Ethereum Price Topside Bias Vulnerable Unless It Clears One Key Resistance

Ethereum price extended its decline below the $1,550 level against the US Dollar. ETH remains at a risk of more losses unless it recovers above $1,560.

• Ethereum gained bearish momentum and traded below $1,550.
• The price is now trading below $1,550 and the 100 hourly simple moving average.
• There is a key bearish trend line forming with resistance near $1,540 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it stays below the $1,560 resistance.

Ethereum Price Turns Red

Ethereum price failed to recover above the $1,600 resistance and extended its decline, similar to bitcoin. ETH traded below the key $1,550 support zone to move further into a bearish zone.

The price even spiked below the $1,530 support zone. A low is formed near $1,492 and the price is now consolidating losses. Ether price is now showing bearish signs below $1,550 and the 100 hourly simple moving average.

An immediate resistance is near the $1,540 level. There is also a key bearish trend line forming with resistance near $1,540 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the key decline from the $1,700 swing high to $1,492 low.

The next major resistance is near the $1,560 level and the 100 hourly simple moving average. A clear move above the $1,560 resistance might send the price towards $1,600. It is close to the 50% Fib retracement level of the key decline from the $1,700 swing high to $1,492 low.

Source: ETHUSD on TradingView.com

An upside break above the $1,600 resistance zone could start a steady increase. In the stated case, the price may perhaps rise towards the $1,650 resistance.

More Losses in ETH?

If ethereum fails to clear the $1,560 resistance, it could continue to move down. An initial support on the downside is near the $1,500 level.

The next major support is near the $1,480 zone. If there is a break below $1,480, the price might head lower towards the $1,435 support. Any more losses might call for a test of the $1,365 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,500

Major Resistance Level – $1,560

Source