Ethereum spiked near $ 620 for the short term and started a sharp drop against the US dollar. ETH price corrects gains and could revisit the $ 500 support zone.
- Ethereum started a downward correction after failing to stay above the USD 580 support.
- The price was below the $ 550 support and the 100 hour simple moving average.
- The ETH / USD hourly chart (data feed via Kraken) saw a break under a heavily bearish channel with support near USD 565.
- The pair have tested the $ 507 level and it seems like there are chances of more downside.
Ethereum price corrected lower
After Ethereum made a short-term spike near the $ 620 level, a sharp downward correction began. ETH was below the $ 600 level and didn’t stay above the $ 580 support level.
A significant break below the USD 580 support level triggered a sharp decline (similar to Bitcoin). Ether price fell sharply below the $ 550 support and was even well below the 100-hour simple moving average. There was also a break under a heavily bearish channel with support near USD 565 on the ETH / USD hourly chart.
The price fell below the $ 520 support and traded as low as $ 507. It is currently rebounding higher and trading above the $ 525 level. Ether tests the Fib retracement level of 23.6% of the recent decline from the high of $ 605 to the low of $ 507.
Source: ETHUSD on TradingView.com
Big resistance is forming on the upside near the USD 550 and USD 555 levels. The 50% fib retracement level of the recent decline from the high of $ 605 to the low of $ 507 is also close to the $ 555 level.
Main resistance is forming near the $ 580 level and the 100-hour simple moving average (the most recent failure zone). A successful close above the $ 580 level is a must to return to a positive zone.
Further losses in ETH?
If Ethereum does not recover above the USD 550 resistance, further losses may occur. The first major support is near the $ 515 level below which the price could retest the $ 507 low.
The main support is near the $ 500 handle. A significant break below the $ 500 handle could result in a significant decline. In that case, the price could even test $ 450.
Hourly MACD – – The MACD for ETH / USD is now gaining momentum in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is now well below the 30 level.
Main support tier – $ 500
Main Resistance Level – $ 550