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Ethereum Price Trend Overwhelmingly Negative As Bears Aim $1,500
Ethereum price declined heavily below $1,800 and $1,700 against the US Dollar. ETH could resume its decline and test the $1,500 support zone.
Ethereum Price Nosedives
Ethereum’s price started a major decline after it broke the $1,800 support zone. ETH gained bearish momentum after it traded below the $1,720 support, similar to Bitcoin.
The bears even pushed the price below the $1,600 level. Finally, it tested the $1,520 zone. A low is formed near $1,517 and the price is now attempting a recovery wave. There was a move above the $1,600 level. The price is now trading above the 50% Fib retracement level of the downward move from the $1,826 swing high to the $1,517 low.
Ether is now trading below $1,750 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,750 on the hourly chart of ETH/USD.
On the upside, the price might face resistance near the $1,700 level. It is close to the 61.8% Fib retracement level of the downward move from the $1,826 swing high to the $1,517 low. The next resistance is near $1,750 or the trend line.
Source: ETHUSD on TradingView.com
A close above the $1,750 level could start a decent increase in the near term. The next major resistance is near the $1,800 level and the 100-hourly Simple Moving Average. Any more gains might send the price toward the $1,820 resistance, above which the price could rise toward the $1.880 zone.
Fresh Decline in ETH?
If Ethereum fails to clear the $1,750 resistance, it could continue to move down. Initial support on the downside is near the $1,620 level.
The first major support is near the $1,550 zone. If the bulls fail to protect the $1,550 support, there could be more losses. The next major support is near the $1,520 support level. Any more losses might send the price toward the $1,500 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,620
Major Resistance Level – $1,750