- Ethereum started a fresh decline below the $1,550 and $1,500 support levels.
- The price is now trading well below $1,550 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides are likely to be limited above $1,550.
Ethereum Price Trims Gains
There was a break below a crucial bullish trend line with support near $1,560 on the hourly chart of ETH/USD. It opened the doors for a drop below $1,500. The pair spiked below the $1,450 support and settled well below the 100 hourly simple moving average.
A low is formed near $1,441 and the price is consolidating losses. An initial resistance is near the $1,520 level. It is close to the 50% Fib retracement level of the recent decline from the $1,598 swing high to $1,441 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,550 level and the 100 hourly simple moving average. The 61.8% Fib retracement level of the recent decline from the $1,598 swing high to $1,441 low is also near $1,550. Moreover, there is a major bearish trend line forming with resistance near $1,560 on the same chart.
More Losses in ETH?
A proper downside break and close below $1,450 could clear the path for a push below $1,400. In the stated case, ether price could even test the $1,375 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is losing pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,450
Major Resistance Level – $1,550