Ethereum is down over 5% and it broke the $1,600 support zone against the US Dollar. ETH price must stay above $1,550 to avoid more losses in the coming sessions.
Ethereum extended its decline after it failed to recover above the $1,750 resistance level.
The price is currently trading well below $1,600 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct higher, but it is likely to face a strong selling interest near $1,650 and $1,660.
Ethereum Price Breaks Key Support
Ethereum made an attempt to gain strength above $1,740 and $1,750, but it failed. A high was formed near $1,737 before the price started a fresh decline, similar to bitcoin.
It broke the key $1,650 support level to move into a bearish zone. The bears even gained strength for a push below the $1,600 support level. A low is formed near $1,545 and the price is now trading well below the 100 hourly simple moving average.
An initial resistance on the upside is near the $1,590 and $1,600 levels. The 23.6% Fib retracement level of the recent decline from the $1,737 high to $1,545 low is also near $1,590 to act as a hurdle.
Source: ETHUSD on TradingView.com
The main resistance is forming near the $1,640 and $1,650 levels (the recent breakdown zone). The 50% Fib retracement level of the recent decline from the $1,737 high to $1,545 low is also near the $1,640 level. If there is an upside break above $1,650, the price could visit $1,700 or the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD.
More Losses in ETH?
If Ethereum fails to climb above the $1,640 and $1,650 resistance levels, it could continue to move down. An initial support on the downside is near the $1,560 level.
The main support is near the $1,550 level. A clear downside break below the $1,550 support could accelerate losses. The next major support below 1,550 may possibly be near the $1,500 level in the near term.
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 40 level.
Major Support Level – $1,550
Major Resistance Level – $1,640