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Ethereum faced an increase in selling and it declined sharply to $550 against the US Dollar. ETH price is correcting higher, but upsides are likely to remain capped near $595 and $600.
- Ethereum declined sharply below the $600, $595 and $580 support levels.
- The price is now recovering from $550, but it is below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $592 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline as long as it is below $595 and $600.
Ethereum Price Settles Below $600
Ripple saw a massive decline below $0.4000 and $0.3000, resulting in bearish moves in bitcoin and Ethereum below $23,000 and $600. ETH price declined sharply below the $600, $595 and $580 support levels.
The decline was such that the price even spiked below the $565 support and settled well below the 100 hourly simple moving average. It tested the $550 support level and recently started an upside correction.
Source: ETHUSD on TradingView.com
There was a break above the $565 and $570 level. Ether price even recovered above the 23.6% Fib retracement level of the recent decline from the $539 high to $550 swing low. However, the price is now facing many hurdles near $590, $592 and $595.
There is also a key bearish trend line forming with resistance near $592 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $539 high to $550 swing low.
A clear break above the $595 and $600 resistance levels could open the doors for more upsides. The next major resistance is near the $620 level and the 100 hourly simple moving average.
Fresh Decline in ETH?
If ethereum fails to surpass the $595 and $600 resistance levels, it could start a fresh decline. An initial support on the downside is near the $570 level.
The first major support is near the $565 level. The main support is still near the $550 level, below which there is a risk of a sharp decline. In the stated case, the price is likely to revisit the $520 support zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $550
Major Resistance Level – $600
