Ethereum saw sales spike and fell sharply against the US dollar to $ 550. ETH price is correcting higher, but upside moves are likely to remain limited near $ 595 and $ 600.
- Ethereum fell sharply below the USD 600, 595 and 580 support levels.
- The price is now bouncing back from $ 550 but is below 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 592.
- The pair could continue its decline as long as it is below $ 595 and $ 600.
The price of the Ethereum is under $ 600
Ripple saw massive drops below $ 0.4000 and $ 0.3000, causing declining moves in Bitcoin and Ethereum below $ 23,000 and $ 600, respectively. ETH price fell sharply below the USD 600, USD 595 and USD 580 support levels.
The decline was such that the price rose below the $ 565 support and was well below the 100 hour simple moving average. It tested the USD 550 support level and recently started an upward correction.
Source: ETHUSD on TradingView.com
There was a pause above the $ 565 and $ 570 levels. Ether price even rebounded above the Fib retracement level of 23.6% from the recent drop from $ 539 to $ 550. However, the price now faces many hurdles near $ 590, $ 592, and $ 595, respectively.
An important bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 592. The trendline is close to the 50% fib retracement level of the recent decline from the high of $ 539 to the low of $ 550.
A sharp break above the USD 595 and USD 600 resistance levels could open the doors to further benefit. The next major resistance is near the $ 620 level and the 100-hour simple moving average.
New decline in ETH?
If Ethereum fails to cross the $ 595 and $ 600 resistance levels, it could see another decline. Initial support on the downside is near the USD 570 level.
The first major support is near the USD 565 level. The main support is still near the USD 550 level below which there is a risk of a sharp decline. In the stated case, the price will likely revisit the USD 520 support zone.
Technical indicators
Hourly MACD – – The MACD for ETH / USD is slowly moving into the bullish zone.
Hourly RSI – – The RSI for ETH / USD is currently well below the 50 level.
Main support tier – $ 550
Main Resistance Level – $ 600
