Ethereum Price Grinds Lower But Key Support Is Still Intact

Ethereum price corrected lower from the $1,670 resistance against the US Dollar. ETH could take a major hit if it breaks the $1,600 support.

• Ethereum started a bearish wave from the $1,660 resistance.
• The price is trading below $1,640 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must stay above the $1,600 support zone to start another increase in the short term.

Ethereum Price Slides Further

Ethereum’s price failed to clear the $1,660 and $1,670 resistance levels. As a result, ETH started another decline and traded below the $1,630 support, like Bitcoin.

The price moved below the $1,620 support as well. However, the bulls are active near the $1,600 level. A low is formed near $1,606 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the downward move from the $1,659 swing high to the $1,606 low.

Ether is now trading below $1,640 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,630 level and the 100-hourly Simple Moving Average. The next resistance is near the $1,640 level and the trend line. The trend line is also near the 61.8% Fib retracement level of the downward move from the $1,659 swing high to the $1,606 low.

Source: ETHUSD on TradingView.com

The main resistance is now forming near $1,660. A close above the $1,660 resistance might send the price toward the $1,720 resistance. The next major barrier is near the $1,750 level. A close above the $1,750 level might send Ethereum further higher toward $1,820.

More Losses in ETH?

If Ethereum fails to clear the $1,640 resistance, it could start another decline. Initial support on the downside is near the $1,600 level.

A downside break below $1,600 might accelerate losses. The next key support is close to $1,540, below which the price could even test the $1,500 level. The next key support is $1,440.

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 – $1,600

Major Resistance Level – $1,640

Source: Read Full Article