TA: Ethereum Consolidates Below $1,650: What Could Trigger A Sharp Decline?
Ethereum extended losses and tested the $1,550 zone against the US Dollar. ETH could gain pace if there is a clear move above the $1,650 resistance.
Ethereum started a downside correction and traded below the $1,650 level.
The price is now trading below $1,650 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if there is a clear break below the $1,550 support.
Ethereum Price Extends Losses
Ethereum remained in a bearish zone below the $1,700 level. ETH even settled below the $1,650 support zone to move into a short-term bearish zone.
There was a clear move below the $1,600 support level. Finally, ether price tested the $1,550 level. It remained stable above the 50% Fib retracement level of the key wave from the $1,355 swing low to $1,785 high. The price is now trading below $1,650 and the 100 hourly simple moving average.
There is also a key bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,650 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The first major resistance is near the trend line and $1,670. A clear move above the $1,670 level could even pump the price to $1,700. If the bulls remain in action, the price may perhaps rise towards the $1,750 resistance zone or even $1,780.
More Losses in ETH?
If ethereum fails to rise above the $1,670 resistance, it could continue to move down. An initial support on the downside is near the $1,570 zone.
The next major support is near $1,550, below which there is a risk of a sharp decline. In the stated case, ether price may perhaps decline towards the $1,520 support in the near term. It is near the 61.8% Fib retracement level of the key wave from the $1,355 swing low to $1,785 high. Any more losses might call for a test of the $1,450 level.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Major Support Level – $1,570
Major Resistance Level – $1,670