Ethereum failed to stay above $1,650 and extended its losses against the US Dollar. ETH may continue to slide towards the $1,500 support zone.
- Ethereum started a downward correction after settling below the $1,700 level.
- The price is now trading below $1,650 and the 100 hourly simple moving average.
- There was a break below a falling channel with support near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair might continue lower towards the support of $1,550 or even $1,500.
Ethereum price extends decline
Ethereum failed to stay above the $1,700 level and launched a downward correction. ETH broke below the $1660 and $1650 support levels to enter a short-term bearish zone.
There was a clear move below the 23.6% Fib retracement level of the upward move from the low from the $1,356 low to $1,785 high. Additionally, there was a break below a falling channel with support near $1,610 on the hourly chart of ETH/USD.
Ether price is now trading below $1,650 and the 100 hour simple moving average. It looks like the price might continue to decline, with immediate support at $1,570.
Immediate resistance on the upside is near the $1,600 level and the support area of the broken channel. The first major resistance is seen near the $1,665 area and the 100 hourly simple moving average. The main resistance is now forming near the $1,680 area.
Source: ETHUSD on TradingView.com
A clear move above the $1,680 level could even push the price higher to $1,720. In the indicated case, the price could possibly rise towards the resistance zone of $1,750 or even $1,780.
More losses in ETH?
If Ethereum fails to break above the $1,680 resistance, it could continue to decline. An initial downside support is seen near the $1,570 area.
The 50% Fib retracement level of the upward move from the $1,356 low to the $1,785 high is also near the $1,570 level. The next major support is near $1,520, below which there is a risk of a steep downside. If indicated, the price of Ether could decline towards the $1,400 support in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now moving into the oversold zone.
Major Support Level – $1,570
Major resistance level – $1,680