Ethereum Price Technical Analysis – ETH/USD Decline Below $600

Key Highlights

  • ETH price declined sharply and moved below the $650 and $620 support levels against the US Dollar.
  • There was a break below a major bullish trend line with support at $685 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is now trading well below the $600 level and the 100 hourly simple moving average.

Ethereum price is under heavy selling pressure against the US Dollar and Bitcoin. ETH/USD remains at a risk of more losses towards $520 and $500.

Ethereum Price Trend

There was a new bearish trend initiated from well above $700 in ETH price against the US Dollar. The price declined heavily and broke a few important support levels such as $680, $650 and $620. It even moved below the $600 level and traded towards $550. The worst part is the fact that the price is now trading well below the $600 level and the 100 hourly simple moving average.

The downside move was initiated after a break below a major bullish trend line with support at $685 on the hourly chart of ETH/USD. The pair traded as low as $569 recently and it may continue to slide in the near term. An initial resistance on the upside is around the 23.6% Fib retracement level of the last drop from the $703 high to $569 low. However, the most important resistance is near $635-650. The mentioned zone is near the 50% Fib retracement level of the last drop from the $703 high to $569 low.

Ethereum Price Technical Analysis ETH USD

Any further gains could be limited and the price may face sellers near $650. On the downside, the price may break the recent low of $569. Once there is a break below $569, the price could head towards the $550 and $540 levels.

Hourly MACD – The MACD is placed heavily in the bearish zone.

Hourly RSI – The RSI is currently in the oversold region.

Major Support Level – $550

Major Resistance Level – $650

 

Charts courtesy – Trading View

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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