Ethereum declined below $ 500 before the bulls appeared near $ 480 against the US Dollar. ETH price is correcting higher, but it is likely to face a strong resistance near $ 550 and the 100 hourly SMA.
- Ethereum started an upside correction after forming 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 forming with resistance near $ 528 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could test the $ 550 resistance if it clears the triangle resistance zone.
Ethereum Price is Facing Hurdles
It opened the doors for more downsides and the price even spiked below $ 500. Finally, ether found support near the $ 480 level. The bears made two attempts to clear the $ 480 support, but they failed. The price started a decent recovery wave above the $ 500 level.
There was a break above the $ 510 resistance level. Ether even climbed above the 23.6% Fib retracement level of the recent decline from the $ 623 swing high to $ 478 low.
Source: ETHUSD on TradingView.com
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 forming with resistance near $ 528 on the hourly chart of ETH/USD.
If there is an upside break above the triangle resistance, the price could test the $ 550 barrier. It is also close to the 50% Fib retracement level of the recent decline from the $ 623 swing high to $ 478 low. To move back into a positive zone, the price must clear the $ 550 resistance and settle above the 100 hourly SMA.
More Losses in ETH?
If ethereum fails to recover above the triangle resistance or $ 550, there could be a fresh decline. An initial support is near the $ 510 level and the triangle lower trend line.
A downside break below the triangle support could push the price below the $ 500 level. The main support is near the $ 480 level, below which there is a risk of a drop towards 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 close to the 50 level.
Major Support Level – $ 510
Major Resistance Level – $ 550