This Confluence Of Bearish Factors Shows Ethereum Could Decline Heavily


Ethereum price failed to settle above $1,650 and trimmed gains against the US Dollar. ETH is now trading in a bearish zone and could decline heavily.

  • Ethereum peaked near $1,670 and started a fresh decline.
  • The price is trading below $1,650 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bearish momentum if there is a close below $1,600 and $1,580.

Ethereum Price Turns Red

Ethereum’s price attempted a fresh increase above the $1,620 pivot level. ETH even broke the $1,650 resistance but the bears were active near the $1,670 level.

As a result, the price failed to continue higher and started a fresh decline below $1,650, like Bitcoin. There was a downside break below the $1,620 level and the 100-hourly Simple Moving Average. The price even retested the $1,600 support zone.

A low is formed near $1,600 and the price is now consolidating losses. Ether is now trading below $1,650 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD. The trend line is close to the 23.6% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.

On the upside, the price might face resistance near the $1,620 level and the trend line. The next resistance is near the $1,635 level or the 50% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.

Source: ETHUSD on TradingView.com

The first major resistance is near $1,650, above which the price could rise toward the $1,670 level. The next major hurdle is near the $1,700 level. A close above the $1,700 level might send Ethereum further higher toward $1,750.

Downside Break in ETH?

If Ethereum fails to clear the $1,620 resistance, it could start another decline. Initial support on the downside is near the $1,600 level.

The first key support is close to $1,580. The next key support is $1,540. A downside break below $1,540 might start a major decline toward $1,450. If there is a downside break below $1,450, the price could test the $1,320 support level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,650



Source link: https://www.newsbtc.com/analysis/eth/ethereum-could-decline-heavily-1600/

Sponsors

spot_img

Latest

Report: FBI Used Foreign Spying Law to Spy on Thousands of Americans

In any normal world that exists within reality and common sense, FBI Director Christopher Wray would be sweating bullets, and the criminal organization...

Documenting the greatest winner of all time, Boston’s Bill Russell

While much of the attention focused on Hall of Fame Boston Celtics big man Bill Russell after his passing has been on the...

Unleash Productivity and Save $70 on This Elite Mac Tool

Disclosure: Our goal is to feature products and services that we think you'll...

3 Things We Get Out of the Process

The idea for this article came from a reader’s question: “Why do we love interior design so much?” It may seem like a...

‘I remember the first time I trained with Roger Federer’, says former ace

Roger Federer had the ability to transcend tennis, becoming a source of inspiration for champions of other disciplines as well. The Swiss...