Ethereum traded to a new yearly high at $ 636 before correcting lower against the US Dollar. ETH price is showing bearish signs and it could decline heavily if there is a break below $ 570.
- Ethereum started a downside correction after trading to a new yearly high at $ 636.
- The price is trading below the $ 600 level and approaching the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $ 590 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower if it fails to stay above $ 570 and the 100 hourly SMA.
Ethereum Price is Down 4%
There was a decent increase in Ethereum above the $ 600 and $ 620 levels. ETH price even broke the previous swing high and traded to a new yearly high at $ 636. However, the bulls failed to gain strength, resulting in a sharp decline below $ 620 (similar to bitcoin).
The price broke the $ 600 support level to move into a short-term bearish zone. The last swing high near $ 620 before the price declined towards the $ 575 support. A low is formed near $ 574 and the price is currently consolidating losses.
It traded above the 23.6% Fib retracement level of the recent decline from the $ 620 high to $ 574 low. Ether is currently facing a strong resistance near the $ 590 and $ 595 levels.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $ 590 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent decline from the $ 620 high to $ 574 low sits at $ 597. A clear break above the trend line resistance and then $ 597 could start a decent increase.
The next key resistance is near the $ 600 level. A successful close above the $ 600 level could lead the price towards the $ 620 resistance in the near term.
Downside Break in ETH?
If ethereum fails to clear the trend line resistance and $ 597, there is a risk of more downsides. An initial support is near the $ 575 level and the recent swing low.
The main support is forming near the $ 570 level and the 100 hourly simple moving average. A proper close below the $ 570 level and the 100 hourly SMA could spark a sharp decline towards the $ 550 and $ 530 levels.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 50 level.
Major Support Level – $ 570
Major Resistance Level – $ 600