Ethereum started a downside correction below $1,600 against the US dollar. ETH is down 6% and remains vulnerable to a drop below the $1,480 support.

  • Ethereum is showing some bearish signals below the $1,600 and $1,580 levels.
  • The price is now trading below $1,600 and the 100-hour simple moving average.
  • ETH/USD (data feed via Kraken) has a major bearish trend line forming with resistance near $1,620 on the hourly chart.
  • The pair may recover if it stays above the $1,500 and $1,480 support levels.

Ethereum Price Trim Profits

Ethereum price failed to clear the $1,650 resistance zone. ETH corrected below the $1,620 and $1,600 levels, as did Bitcoin. The decline gained momentum below the 50% Fib retracement level of the upward move from the $1,480 swing low to the $1,680 high.

The price fell more than 6% on the day and traded below the $1,550 support zone. A low has formed near $1,518 and the price is now consolidating losses.

Ether price is now trading below $1,600 and below the 100 hourly simple moving average. Immediate resistance is near the $1,555 level. It is near the 23.6% Fib retracement level of the current decline from the $1,680 swing high to the $1,518 low.

Another major resistance is near the $1,660 level. This is near the 50% Fib retracement level of the recent decline from the $1,680 swing high to the $1,518 low. There is also a major bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD.

estuary: ETHUSD on TradingView.com

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A reversal break above the $1,620 resistance zone could start a new rally. In the mentioned case, the price may rise towards the $1,680 resistance.

More losses in ETH?

If Ethereum fails to clear the $1,600 resistance, it may continue to move lower. Initial support on the downside is near the $1,520 level or the current low.

Another major support is near the $1,480 level. If there is a break below $1,480, the price could fall towards the $1,420 support. Any further losses could call for a test in the $1,350 area.

Technical indicators

Hourly MACDThe MACD for ETH/USD is currently accelerating into bearish territory.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major support level – $1,480

Major resistance level – $1,600

Source

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