Analysis

TA: Ethereum Bears Keeps Fighting, Why ETH Could Correct Sharply

Ethereum is still struggling to clear the $ 595 resistance zone against the US Dollar. ETH price remains at a risk of a sharp decline if it breaks the $ 575 support zone.

  • Ethereum is still trading well below the main $ 595 and $ 600 resistance levels.
  • The price is now approaching the $ 580 support zone and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $ 585 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a major downward move if there is a clear break below the $ 575 support.

Ethereum Price Showing Bearish Signs

In the past two days, Ethereum made a few attempts to gain bullish momentum above the $ 594, $ 595, and $ 600 resistance levels. ETH failed to continue higher and mostly traded in a range above the $ 565 level.

The recent high was formed near $ 593 before the price declined below the $ 590 level. There was a break below a major bullish trend line with support near $ 585 on the hourly chart of ETH/USD. The pair even broke the 23.6% Fib retracement level of the upward move from the $ 577 swing low to $ 593 high.

Ether price is now approaching the $ 580 support zone and the 100 hourly simple moving average. The 76.4% Fib retracement level of the upward move from the $ 577 swing low to $ 593 high is also near $ 580.

Ethereum Price

Source: ETHUSD on TradingView.com

If the price fails to stay above the $ 580 support and the 100 hourly SMA, there is a risk of more downsides. The next key support is near the $ 575 level. A close below the $ 575 support zone could spark a sharp decline towards the $ 565 and $ 555 levels in the near term.

Fresh Increase in ETH?

If ethereum stays above the $ 580 and $ 575 support levels, it could move higher in the mentioned range. An initial resistance is near the broken trend line and $ 585.

The main resistance is still near the $ 595 level. A clear break above the $ 595 and $ 600 resistance levels may possibly clear the path for a sustained upward move. The next major resistance is near the $ 620 zone.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is currently just below the 55 level.

Major Support Level – $ 575

Major Resistance Level – $ 595

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