Ethereum fell sharply from the $1,655 resistance zone against the US Dollar. ETH is in trouble and likely to take more losses below the $1,450 level.
- Ethereum started a fresh decline after failing to clear the $1,650 resistance zone.
- The price is now trading below $1,550 and the 100 hourly simple moving average.
- A major bearish trend line is forming with resistance near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate even lower below the near-term $1,450 support zone.
Ethereum price starts a new decline
Ethereum failed to gain strength for a move above the $1,650 and $1,660 resistance levels. ETH formed a high near the $1,653 level and started a fresh decline.
There has been a steady decline below the $1,600 level and the 100 hourly simple moving average. The price even traded below the $1,550 and $1,520 support levels. There was a decline of around 10% and the price traded at $1,453.
Ether price is now consolidating losses above the $1,450 level and below the 100 hour simple moving average. On the upside, the price faces resistance near the $1,500 level. It is near the 23.6% Fib retracement level of the recent swing decline from the $1,653 swing low to $1,453 low.
The next major resistance is near the $1550 and $1560 levels. It is near the 50% Fib retracement level of the recent swing decline from the $1,653 swing low to $1,453 low.
Source: ETHUSD on TradingView.com
A clear break above $1,560 could send the price towards the $1,600 level. A major bearish trend line is also forming with resistance near $1,610 on the hourly chart of ETH/USD. Any further gains could perhaps open the doors for a move towards the $1,650 resistance in the near term.
More losses in ETH?
If Ethereum fails to break above the $1,500 resistance, it could continue to decline. An initial downside support is seen near the $1,450 area.
The next major support is near $1,420. A break down below the $1,420 support could lead to another sharp decline. In the indicated case, the price of Ether might decline towards the $1,350 level.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,450
Major resistance level – $1,550