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

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

Major Support Level – $575

Major Resistance Level – $595



from NewsBTC https://www.newsbtc.com/analysis/eth/ethereum-bears-keeps-fighting-595/

Post a Comment

0 Comments