Ethereum (ETH) Price Analysis: If It Cannot Go Above This Level, There Could Be A New Decline
Ethereum (ETH) is likely to face strong resistance around $ 550 and the 100-hour SMA, according to technical analysis by Aayush Jindal.
Ethereum started an upward correction after building a strong support at $ 480.
The price is facing a strong resistance near $ 550 and the 100 hourly simple moving average.
There is a short-term contracting triangle formation with resistance around $ 528 on the hourly chart of ETH / USD (based on Kraken data).
The pair could test the $ 550 resistance if the pattern clears the resistance zone.
ETH Faces Obstacles
There was a sharp drop in Bitcoin, Ethereum, XRP and other altcoins yesterday. ETH even broke the $ 550 support level and positioned well below the 100 hourly simple moving average.
ETH even opened the door to more declines and went below $ 500. Finally, ETH found support near the $ 480 level. The bears made two attempts to clear the $ 480 support, but they were unsuccessful. The price started a good recovery wave above the $ 500 level.
There was a break above the $ 510 resistance level. Ethereum even climbed above the 23.6% Fib retracement level of the last drop from $ 623 to $ 478.
On the upside, there is a major hurdle forming near the $ 550 level and the 100 hourly simple moving average. There is also a short term contracting triangle formation with resistance near $ 528 on the hourly chart of the ETH / USD pair.
If there is an upside break above the formation resistance, the price could test the $ 550 hurdle. This is also near the 50% Fib retracement level of the last drop from $ 623 to $ 478. To return to the positive zone, the price must clear the $ 550 resistance and move above the 100 hourly SMA.
Will There Be Any More Losses?
If Ethereum fails to break above the contracting triangle resistance or above $ 550, there could be a new drop. Initial support is near the $ 510 level and the triangle lower trend line.
A downside break below the pattern support could push the price below the $ 500 level. The main support is near the $ 480 level and below that there is a risk of falling to the $ 450 level.
Hourly MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH / USD is currently near the 50 level.
Major Support Level – $ 510
Major Resistance Level – $ 550