Ethereum began a sharp decline well above USD 650 against the US dollar. The ETH price settled below the key USD 635 support zone, which may now act as a resistance in the near term.
- Ethereum started a fresh decline and traded below the USD 620 and USD 630 support levels.
- The price is now trading well below $ 630 and the 100 simple hourly moving average.
- A major bearish trendline is forming with resistance near USD 633 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could correct higher but will likely face sellers near USD 630 and USD 635.
Ethereum Price is holding onto the USD 600 support
After another rejection near $ 670, Ethereum started a downward move similar to bitcoin. ETH has broken the USD 650 support level to start the current decline. There was a marked break below the USD 620 and USD 630 support levels.
It opened the doors to more downsides below USD 610. Ether even spiked below the USD 600 support level and settled well below the USD 100 simple hourly moving average. A low is formed near the USD 597 level and the price is currently consolidating losses.
It rebounded above the USD 610 level and the 23.6% Fib retracement level from the recent drop in the swing high from USD 648 to USD 597 low. An initial resistance on the upside is near the USD 620 and USD 622 levels.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent drop in the swing high from $ 648 to $ 597 low is also near $ 622. The main resistance is now forming near the $ 630 zone and the 100 simply moving forward hourly average. A major bearish trendline is also forming with resistance near $ 633 on the ETH / USD hourly chart.
A clear break above the USD 630 and USD 635 resistance levels is necessary to ease the current bearish pressure. In the case mentioned, the price could easily rebound towards the USD 650 and USD 660 levels.
More cons in ETH?
If ethereum struggles to surpass the USD 622 and USD 630 resistance levels, it could continue to decline. Initial support on the downside is near the USD 605 level.
The first major support is near the USD 600 level. A close below the USD 600 and USD 595 support levels could open the door for a larger decline towards the USD 580 and USD 575 levels in the near term.
MACD per hour – The MACD for ETH / USD is slowly losing momentum in the bearish zone.
RSI per hour – The RSI for ETH / USD is currently just above the 45 level.
Major Support Level – USD 600
Major Resistance Level – $ 635