TA: Why Ethereum Below $550 Indicates A Larger Decline Towards $500-520
Ethereum failed to surpass the main $580 resistance against the US Dollar. ETH price is declining and it is showing bearish signs below the $560 and $550 levels.
- Ethereum topped near the $577 level and started a fresh decline below $565.
- The price is showing bearish signs below the $550 zone and the 100 hourly simple moving average.
- There are two key bearish trend lines forming with resistance near $560 and $575 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair remains at a risk of a sharp decline below the $540 and $530 levels in the near term.
Ethereum Price is Slowly Declining
There was a failed attempt by Ethereum to clear the $580 resistance zone. ETH price traded as high as $577 and recently started a fresh decline. There was a break below the $565 pivot level to spark a fresh downward move.
Bitcoin price also moved below the $18,000 support and ripple declined below $0.565. Ether price broke the $550 support level. There was a clear break below the 50% Fib retracement level of the upward move from the $530 swing low to $577 high.
The price is now showing bearish signs below the $550 zone and the 100 hourly simple moving average. An initial support is near the $540 level. It is close to the 76.4% Fib retracement level of the upward move from the $530 swing low to $577 high.
Source: ETHUSD on TradingView.com
On the upside, the bulls are facing many hurdles, starting with $555. There are also two key bearish trend lines forming with resistance near $560 and $575 on the hourly chart of ETH/USD.
To move into a positive zone, ether must gain momentum above $560 and then clear the bearish trend line. The main resistance is still near the $580 zone.
More Losses in ETH?
If ethereum fails to clear the $555 and $560 resistance levels, it could continue to move down. An initial support zone is forming near the $540 level.
The next major support is near the $530 swing low, below which there is a risk of a larger decline. In the stated case, the price could even break the $520 support and revisit $500.
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $530
Major Resistance Level – $565