Ethereum Price Technical Analysis – ETH/USD Could Break $500

0
356

[ccpw id=”6606″]

Key Highlights

  • ETH price is under pressure as it moved below the $560 support level against the US Dollar.
  • There was a break below a major bullish trend line with support at $560 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair may continue to decline and it could even attempt a break below the $500 level in the near term.

Ethereum price is slowly declining once again against the US Dollar and Bitcoin. ETH/USD remains at a risk of more declines below the $500 level.

Ethereum Price Resistance

There were no further gains above the $585-590 levels in ETH price against the US Dollar. The price started a downside move and traded below the $575 and $560 support levels. There was also a break below the 23.6% Fib retracement level of the last wave from the $455 low to $589 high. During the decline, the price also broke the $540 level and it is currently well below the 100 hourly simple moving average.

More importantly, there was a break below a major bullish trend line with support at $560 on the hourly chart of ETH/USD. At the moment, the pair is trading a few points below the 50% Fib retracement level of the last wave from the $455 low to $589 high. It may continue to decline in the short term and there is a risk of a break below of the $500 support. Below $500, the price may trade lower towards the 76.4% Fib retracement level of the last wave from the $455 low to $589 high at $487.

Ethereum Price Technical Analysis ETH USD

On the upside, there is a connecting bearish trend line with current resistance at $554.00. Moreover, the 100 hourly SMA is positioned at $552 to act as a major hurdle for buyers.

Hourly MACD – The MACD is now in the bearish zone.

Hourly RSI – The RSI is currently well below the 60 level.

Major Support Level – $500

Major Resistance Level – $550

 

Charts courtesy – Trading View

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.



Original Source