TA: Ethereum Bears Keeps Fighting, Why ETH Could Correct Sharply

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email

Ethereum is still struggling to clear the $595 resistance zone against the US Dollar. ETH price remains at a risk of a sharp decline if it breaks the $575 support zone.

  • Ethereum is still trading well below the main $595 and $600 resistance levels.
  • The price is now approaching the $580 support zone and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $585 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a major downward move if there is a clear break below the $575 support.

Ethereum Price Showing Bearish Signs

In the past two days, Ethereum made a few attempts to gain bullish momentum above the $594, $595, and $600 resistance levels. ETH failed to continue higher and mostly traded in a range above the $565 level.

The recent high was formed near $593 before the price declined below the $590 level. There was a break below a major bullish trend line with support near $585 on the hourly chart of ETH/USD. The pair even broke the 23.6% Fib retracement level of the upward move from the $577 swing low to $593 high.

Ether price is now approaching the $580 support zone and the 100 hourly simple moving average. The 76.4% Fib retracement level of the upward move from the $577 swing low to $593 high is also near $580.

Source: ETHUSD on TradingView.com

If the price fails to stay above the $580 support and the 100 hourly SMA, there is a risk of more downsides. The next key support is near the $575 level. A close below the $575 support zone could spark a sharp decline towards the $565 and $555 levels in the near term.

Fresh Increase in ETH?

If ethereum stays above the $580 and $575 support levels, it could move higher in the mentioned range. An initial resistance is near the broken trend line and $585.

The main resistance is still near the $595 level. A clear break above the $595 and $600 resistance levels may possibly clear the path for a sustained upward move. The next major resistance is near the $620 zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently just below the 55 level.

Major Support Level – $575

Major Resistance Level – $595

Via: https://www.newsbtc.com

Leave a Replay