What’s the case with Ethereum (ETH)? Warning that Scares the Analyst
Ethereum (ETH) peaked in the short term, rising to around $ 620 the previous day, and then began a sharp decline against the US dollar. ETH price is currently correcting gains and may revisit the $ 500 support zone.
Ethereum started a downside correction as it failed to stay above the $ 580 support.
The price traded below the $ 550 support and the 100 hourly simple moving average. The leading altcoin was trading at $ 518 at the time of writing. There was a break below a major bearish channel with support near $ 565 on the hourly chart of ETH / USD, according to analyst Aayush Jindal. The pair tested the $ 507 level and there seems to be more downsides.
Ethereum Price Decline May Continue
Ethereum started a sharp downside correction after forming a short-term high near the $ 620 level. ETH dropped below the $ 600 level and could not stay above the $ 580 support level.
A clear break below the $ 580 support level resulted in a strong decline (similar to Bitcoin). Ethereum price fell well below the $ 550 support and even fell below the 100 hourly simple moving average. There was a break below a major bearish channel with support near $ 565 on the hourly chart of ETH / USD. The price fell below the $ 520 support and traded as low as $ 507. Then it spiked and is now trading at $ 530. ETH is testing the 23.6% Fib retracement level of the last drop from $ 605 to $ 507.
On the upside, there is a major resistance formed near the $ 550 and $ 555 levels. The main resistance is formed near the $ 580 level and the 100 hourly simple moving average (last breakout zone). A successful close above the $ 580 level could provide a return to a positive zone.
More Chances of Loss in ETH
If Ethereum fails to break above the $ 550 resistance, there could be more losses. The first major support is near the $ 515 level where the price may retest the $ 507 low. Major support is near $ 500. A clear break below the $ 500 level could trigger a significant decline. In the case mentioned, the price can even test $ 450.
Hourly MACD: The MACD for ETH / USD is currently gaining momentum in the bearish zone.
Hourly RSI: The RSI for ETH / USD is currently well below the 30 level.
Major Support Level: $ 500
Major Resistance Level: $ 550