Ethereum extended its losses and tested the $1,550 zone against the US Dollar. ETH could gain momentum if there is a clear move above the $1,650 resistance.
- Ethereum started a downward correction and traded below the $1,650 level.
- The price is now trading below $1,650 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue lower if there is a clear break below the $1,550 support.
Ethereum Price Extends Losses
Ethereum remained in a bearish zone below the $1,700 level. ETH even settled below the $1,650 support zone to move into a short-term bearish zone.
There was a clear move below the $1600 support level. Finally, the price of Ether tested the $1,550 level. It held steady above the 50% Fib retracement level of the key wave from the $1,355 low to $1,785 low. The price is now trading below $1,650 and the 100 hourly simple moving average.
There is also a key bearish trend line forming with resistance near $1,660 on the hourly ETH/USD chart. Immediate resistance on the upside is near the $1,650 level and the 100 hour simple moving average.
Source: ETHUSD on TradingView.com
The first major resistance is near the trendline and $1,670. A clear move above the $1,670 level could even push the price up to $1,700. If the bulls stay in action, 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 $1,670 resistance, it could continue to decline. An initial downside support is seen near the $1,570 area.
The next major support is near $1,550, below which there is a risk of a steep downside. If indicated, the price of Ether could decline towards the support of $1,520 in the short term. It is near the 61.8% Fib retracement level of the key wave from the $1,355 low to $1,785 high. Any further losses may require a test of the $1,450 level.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,570
Major resistance level – $1,670