Ethereum failed to stay above the $ 1,600 resistance against the US dollar. The ETH is correcting on the downside and must remain above $ 1,540 to continue rising.
- Ethereum failed to break out of the $ 1,620 and $ 1,625 resistance levels.
- The price is now trading near $ 1,550 and the hourly simple moving average of 100.
- There is a major uptrend channel forming with support near $ 1,540 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could start another rise if it stays above the $ 1,540 and $ 1,500 support levels.
The price of Ethereum remains supported
Ethereum attempted a break to the upside above the $ 1,620 level but struggled. The bears were active near the $ 1,620 zone and the price started a downward correction.
It formed a high near $ 1,619 before the price corrected to the downside. There was a drop below the $ 1,560 level and the 100-hour simple moving average. However, the bulls have been active near the $ 1,530 and $ 1,525 levels. It has formed a low near $ 1,530 and the price is now consolidating.
There was a move above $ 1,550 and the 100-hour simple moving average. The price rose above the 50% Fib retracement level of the recent drop from the swing high of $ 1,619 to the low of $ 1,530.
It is now consolidating near $ 1,550 and the 100-hour simple moving average. There is also a major uptrend channel forming with support near $ 1,540 on the ETH / USD hourly chart. It is facing resistance near the $ 1,580 and $ 1,585 levels.
The 61.8% Fib retracement level of the recent drop from the swing high of $ 1,619 to the low of $ 1,530 is also close to the $ 1,585 level. The next big resistance is now forming near the $ 1,620 level.
Source: ETHUSD on TradingView.com
A clear move above the $ 1,620 level could send the price towards a resistance of $ 1,650. Any further gains could perhaps open the door for a $ 1,700 resistance test in the near term.
New decline in ETH?
If ethereum fails to break out of the $ 1,585 resistance, another decline could begin. Initial downside support is near the $ 1,540 zone and the channel’s trend line.
The next major support is near $ 1,500, below which the ether price could gain bearish momentum. In the case indicated, the price could possibly drop towards the $ 1.425 level. Any further losses could possibly send the price towards the $ 1,380 zone.
MACD hourly – The MACD for ETH / USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH / USD is now below the 50 level.
Main Support Level: $ 1,540
Major Resistance Level – $ 1,585