Ethereum saw a sharp drop against the US dollar, well over $ 650. ETH price was below the key support zone of $ 635, which could now act as resistance in the short term.
- Ethereum started a new drop, trading below the USD 620 and USD 630 support levels.
- The price is now trading well below $ 630 and the 100 hour simple moving average.
- A large bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 633.
- The pair could correct higher but it is likely to face sellers near $ 630 and $ 635.
Ethereum price keeps $ 600 support
After another rejection near $ 670, Ethereum started a downward movement similar to Bitcoin. ETH broke the USD 650 support level to initiate the current decline. There was a significant break below the USD 620 and USD 630 support levels.
It opened the doors to other disadvantages under $ 610. Ether was even below the $ 600 support level and was well below the 100 hour simple moving average. A low is being formed near the $ 597 level and the price is currently consolidating losses.
It rebounded above the $ 610 level and 23.6% fib retracement level of the recent decline from the high of $ 648 to the low of $ 597. Initial resistance to the upside is near the USD 620 and USD 622 levels.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the high of $ 648 to the low of $ 597 is also near $ 622. The main resistance is now forming near the $ 630 zone and the 100-hour simple moving average. A large bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 633.
A sharp break above the $ 630 and $ 635 resistance levels is needed to ease the current bearish pressures. In the indicated case, the price could easily rebound towards the USD 650 and USD 660 levels.
Other disadvantages at ETH?
If the Ethereum struggles to beat the USD 622 and USD 630 resistance levels, it could go further down. Initial support on the downside is near the $ 605 level.
The first major support is near the $ 600 level. A close below the $ 600 and $ 595 support levels could open the doors for a larger decline towards the $ 580 and $ 575 levels in the short term.
Technical indicators
Hourly MACD – – The MACD for ETH / USD is slowly losing momentum in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is currently just above the 45 level.
Main support tier – $ 600
Main Resistance Level – $ 635
