Ethereum fell below $ 500 before the bulls appeared near $ 480 against the US dollar. ETH price is correcting higher but is likely to face strong resistance near $ 550 and the 100-hour SMA.
- Ethereum started an upward correction after building strong support at $ 480.
- The price faces strong resistance near $ 550 and the 100-hour simple moving average.
- A short-term contraction triangle is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 528.
- The pair could test the $ 550 resistance if it clears the triangle resistance zone.
The Ethereum price is facing hurdles
Yesterday we saw a sharp drop in Bitcoin, Ethereum, Ripple and other altcoins. ETH even surpassed the USD 550 support level and settled well below the 100 hour simple moving average.
It opened the doors to more drawbacks, and the price even went below $ 500. Eventually, Ether found support near the $ 480 level. The bears made two attempts to clear the $ 480 support but failed. The price sparked a decent rally above the $ 500 level.
There was a break above the USD 510 resistance level. Ether even climbed above the 23.6% Fib retracement level of the recent decline from the $ 623 swing high to the $ 478 low.
Source: ETHUSD on TradingView.com
On the upside, there is a major hurdle forming near the $ 550 level and the 100-hour simple moving average. A short-term contraction triangle is also forming on the hourly chart of ETH / USD with resistance near USD 528.
If there is an upside break above the triangular resistance, the price could test the $ 550 barrier. It is also close to the 50% Fib retracement level of the recent decline from the $ 623 swing high to the $ 478 low. To return to a positive zone, the price must break the USD 550 resistance and move above the 100-hour SMA.
Further losses in ETH?
If Ethereum doesn’t rebound above the triangular resistance or $ 550, it could see another decline. Initial support is near the USD 510 level and the lower trendline of the triangle.
A downside break below the triangle support could push the price below the $ 500 level. The main support is near the USD 480 level, below which there is a risk of falling towards the USD 450 level.
Hourly MACD – – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
Hourly RSI – – The RSI for ETH / USD is currently close to the 50 level.
Main support tier – $ 510
Main Resistance Level – $ 550