Ethereum experienced an increase in sales and fell sharply to $ 550 against the US dollar. ETH price is correcting higher, but benefits are likely to be limited to the USD 595 and USD 600 mark.
- Ethereum declined sharply below the USD 600, USD 595 and USD 580 support levels.
- The price is now recovering from $ 550 but is below the 100 easy hourly moving average.
- A major bearish trendline is forming with resistance near USD 592 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could resume its decline as long as it is below USD 595 and USD 600.
Ethereum price goes below $ 600
Ripple saw a massive decline below USD 0.4000 and USD 0.3000, resulting in bearish moves in bitcoin and Ethereum below USD 23,000 and USD 600. ETH price declined sharply below the USD 600, USD 595 and USD 580 support levels.
The decline was such that the price peaked even below the USD 565 support and came in well below the 100 easy hourly moving average. It tested the USD 550 support level and recently started an upside correction.
Source: ETHUSD on TradingView.com
There was a pause above the USD 565 and USD 570 levels. The ether price even recovered above the 23.6% Fib retracement level of the recent decline from the USD 539 high to USD 550 swing low. However, the price is now facing many hurdles near USD 590, USD 592 and USD 595.
A major bearish trendline is also forming with resistance near $ 592 on the ETH / USD hourly chart. The trend line is close to the 50% Fib retracement level of the recent drop from the $ 539 high to the $ 550 swing low.
A clear break above the USD 595 and USD 600 resistance levels could open the doors for more benefits. The next big resistance is near the USD 620 level and the 100-hour simple moving average.
New decline in ETH?
If ethereum fails to surpass the USD 595 and USD 600 resistance levels, it could trigger another decline. An initial support on the downside is near the USD 570 level.
The first major support is near the USD 565 level. The main support is still near the USD 550 level, below which there is risk of a sharp decline. In the case mentioned, the price is likely to revisit the USD 520 support zone.
MACD per hour – The MACD for ETH / USD is slowly moving into the bullish zone.
RSI per hour – The RSI for ETH / USD is currently well below the 50 level.
Major Support Level – USD 550
Major Resistance Level – $ 600