Ethereum started a sharp decline below $1,850 against the US Dollar. ETH price spiked towards $1,500 and it is currently struggling to stay above $1,650.
- Ethereum declined heavily after it broke the $1,850 and $1,750 support levels.
- The price is now trading well below $1,800 and the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support near $1,865 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it fails to stay above the $1,650 support.
Ethereum Price is Showing Bearish Signs
Ethereum started a strong decline after it failed to stay above $2,000. ETH broke many important supports near $1,850 and $1,800 to move into a short-term bearish zone, similar to bitcoin.
There was also a break below a crucial bullish trend line with support near $1,865 on the hourly chart of ETH/USD. It opened the doors for more losses below the $1,750 support. The price even spiked below the $1,600 level and settled well below the 100 hourly simple moving average.
It traded close to the $1,500 support and recently started an upside correction. There was a recovery wave above the $1,600 and $1,650 levels. The price even climbed above the 50% Fib retracement level of the recent decline from the $1,980 high to $1,500 swing low.
Source: ETHUSD on TradingView.com
However, the price failed to surpass the $1,800 resistance level. It struggled to clear the 61.8% Fib retracement level of the recent decline from the $1,980 high to $1,500 swing low.
Ether is now moving lower and approaching the $1,650 support. If there is a close below $1,650 and $1,620, there are chances of a fresh decline towards the $1,500 support. An intermediate support sits near the $1,550 level.
Fresh Increase in ETH?
If Ethereum stay above the $1,650 support, it could attempt a fresh increase. The first key resistance is near the $1,750 level.
The next major resistance is forming near the $1,800 level (the recent breakdown zone). To move into a positive zone, the price must gain momentum above $1,850 and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,650
Major Resistance Level – $1,800