Key Highlights
- ETH price is struggling to correct higher and is currently trading below $540 against the US Dollar.
- There is a crucial bearish trend line forming with resistance at $530 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is holding a major support zone at $508-513, which holds the key in the near term.
Ethereum price is under pressure against the US Dollar and Bitcoin. ETH/USD remains at a risk of more losses below the $508 level if it fails to move above $530.
Ethereum Price Upside Hurdle
There was no major upside recovery above $540 in ETH price against the US Dollar. The price declined and moved below the $530 and $525 support levels. It is now trading well below the $540 level and the 100 hourly simple moving average. The downside pressure was such that the price formed many bearish structures below $540. However, the price is still holding the $500 support zone.
There are two important support levels on the downside at $508 and $513. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the $590 high to $506 low. Moreover, there is also a crucial bearish trend line forming with resistance at $530 on the hourly chart of ETH/USD. The same trend line resistance is near the 100 hourly SMA and the mentioned Fib level. Above the $530 resistance, the next hurdle is around the 50% Fib retracement level of the last decline from the $590 high to $506 low at $548.
Only a close above the $548-550 zone could push the price back in the bullish zone. On the downside, a break below the $508 support and close below $500 may call for more losses.
Hourly MACD – The MACD is now placed nicely in the bearish zone.
Hourly RSI – The RSI is currently below the 50 level.
Major Support Level – $508
Major Resistance Level – $530
Charts courtesy – Trading View
