Why Ethereum Below $1,400 Could Spark A Sharp Decline

Ethereum failed to settle above $1,650 and started a fresh decline against the US Dollar. ETH price is now trading in a bearish zone, with a risk of a drop below $1,400.
Ethereum started a strong decline after it struggle to surpass the $1,700 zone.
The price is now trading well below $1,550 and the 100 hourly simple moving average.
There was a break below a major contracting triangle with support near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it fails to stay above $1,450 and $1,400 in the near term.
Ethereum Price is Showing Bearish Signs
Ethereum climbed above $1,650, but it failed to extend gains above the $1,700 level. A high was formed near $1,672 before ETH price started a fresh decline.
It seems like the price failed to surpass the 100 hourly simple moving average, currently at $1,650. There was a sharp decline below the $1,600 and $1,550 support levels. There was also a break below a major contracting triangle with support near $1,620 on the hourly chart of ETH/USD.
Ether price is now trading well below $1,550 and the 100 hourly simple moving average. It traded as low as $1,459 and it is currently consolidating losses. On the upside, an initial resistance is near the $1,565 level. It is close to the 50% Fib retracement level of the downward move from the $1,672 high to $1,459 low.

Source: ETHUSD on TradingView.com
The first major resistance is near the $1,600 level. The 61.8% Fib retracement level of the downward move from the $1,672 high to $1,459 low is also near $1,590. The main resistance is now near $1,650 and the 100 hourly simple moving average, above which there are chances of a strong break above $1,700.
Fresh Dip in ETH?
If Ethereum fails to continue higher above the $1,565 and $1,590 resistance levels, it could extend its decline. An initial support on the downside is near the $1,450 level.
The main support is near the $1,400 zone. If there is a downside break below the $1,400 support zone, there is a real risk of a sharp decline below the $1,350 and $1,320 levels. The next key support is near the $1,240 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly 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 – $1,600

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