Key Highlights
- ETH price declined sharply and moved below the $650 and $620 support levels against the US Dollar.
- There was a break below a major bullish trend line with support at $685 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now trading well below the $600 level and the 100 hourly simple moving average.
Ethereum price is under heavy selling pressure against the US Dollar and Bitcoin. ETH/USD remains at a risk of more losses towards $520 and $500.
Ethereum Price Trend
There was a new bearish trend initiated from well above $700 in ETH price against the US Dollar. The price declined heavily and broke a few important support levels such as $680, $650 and $620. It even moved below the $600 level and traded towards $550. The worst part is the fact that the price is now trading well below the $600 level and the 100 hourly simple moving average.
The downside move was initiated after a break below a major bullish trend line with support at $685 on the hourly chart of ETH/USD. The pair traded as low as $569 recently and it may continue to slide in the near term. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $703 high to $569 low. However, the most important resistance is near $635-650. The mentioned zone is near the 50% Fib retracement level of the last drop from the $703 high to $569 low.
Any further gains could be limited and the price may face sellers near $650. On the downside, the price may break the recent low of $569. Once there is a break below $569, the price could head towards the $550 and $540 levels.
Hourly MACD – The MACD is placed heavily in the bearish zone.
Hourly RSI – The RSI is currently in the oversold region.
Major Support Level – $550
Major Resistance Level – $650
Charts courtesy – Trading View
