Ethereum hit a new annual high of $ 636 before correcting lower against the US dollar. ETH price is showing bearish signs and could drop sharply if it breaks below $ 570.
- Ethereum began a downward correction after trading to a new annual high of $ 636.
- The price is trading below the $ 600 level and is approaching the 100 hour simple moving average.
- An important bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 590.
- The pair is likely to continue falling unless it stays above $ 570 and the 100-hour SMA.
The price of the Ethereum has dropped 4%
Ethereum rose neatly above the USD 600 and USD 620 levels. The ETH price even broke the previous swing high and was quoted at a new annual high at USD 636. The bulls did not gain strength, however, resulting in a sharp drop below $ 620 (similar to Bitcoin).
The price broke the USD 600 support level to enter a short-term bearish zone. Last high near $ 620 before falling towards the $ 575 support. A low is being formed near $ 574 and the price is currently consolidating losses.
It traded above the 23.6% fib retracement level of the recent decline from the high of $ 620 to the low of $ 574. Ether is currently facing strong resistance near the $ 590 and $ 595 levels.
Source: ETHUSD on TradingView.com
An important bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 590. The 50% Fib retracement level of the recent decline from the high of $ 620 to the low of $ 574 is at $ 597. A sharp break above the trendline resistance and then $ 597 could trigger a decent move higher.
The next major resistance is near the $ 600 level. A successful close above the $ 600 level could move the price towards the $ 620 resistance in the short term.
Downward pause at ETH?
If Ethereum does not remove trendline resistance and $ 597, there is a risk of other downsides. Initial support is near the USD 575 level and recent lows.
The main support is near the $ 570 level and the 100-hour simple moving average. A decent close below the $ 570 level and the 100 hour SMA could trigger a sharp decline towards the $ 550 and $ 530 levels.
Hourly MACD – – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is currently well below the 50 level.
Main support tier – $ 570
Main Resistance Level – $ 600