Key Highlights
- ETH price settled below the $600 support level with negative signs against the US Dollar.
- There is a crucial contracting triangle forming with current support at $580 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair may well make the next move either above $600 or below $580 in the near term.
Ethereum price is struggling to recover versus the US Dollar and Bitcoin. ETH/USD is now approaching a crucial break, possibly higher if buyers gain control.
Ethereum Price Trend
There were heavy losses in ETH price from the $724 swing high this past week against the US Dollar. The price failed to hold a major support area near $637 and declined sharply. The decline was such that the price broke the $600 and $575 support levels. A low was formed at $543 from where the price started a minor upside correction above $560.
It recovered and moved above the 23.6% Fib retracement level of the last decline from the $724 high to $543 low. However, the upside move was capped by the $610-612 resistance zone. Moreover, the 38.2% Fib retracement level of the last decline from the $724 high to $543 low acted as a strong barrier for buyers and prevented gains. At the moment, it seems like there is a crucial contracting triangle forming with current support at $580 on the 4-hours chart of ETH/USD. The pair seems to be trading in a range above $580 and is preparing for the next move.
The above chart indicates that the price is currently under slight bearish pressure. If it fails to hold the $580 and $575 support levels, there may be sharp declines back towards $540. On the flip side, a break above the $600 level may open the doors for push towards the $637 pivot level.
4-hours MACD – The MACD is slightly placed in the bullish zone.
4-hours RSI – The RSI is currently well below the 50 level.
Major Support Level – $575
Major Resistance Level – $600
