- ETH price nosedived below $620 after it struggled to move above the $650 resistance against the US Dollar.
- There are two bearish trend lines forming with resistances at $610 and $655 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently consolidating losses above $650 and it remains at a risk of more losses.
Ethereum price fell sharply against the US Dollar and Bitcoin. ETH/USD settled below the $600 support and it may continue to decline in the near term.
Ethereum Price Decline
There was a solid downside move in ETH price from the $650 swing high against the US Dollar. The price was rejected during yesterday’s correction near $650-655. As a result, there was a major drop and the price moved below the $620 and $600 support levels. The drop was crucial as the price settled below $600 and it is currently trading well below the 100 hourly simple moving average.
A low was formed at $563 before the price started consolidating losses. It corrected a few points and moved above the 23.6% Fib retracement level of the last drop from the $651 high to $563 low. However, there are many hurdles for buyers around the $600-620 zone. More importantly, there are two bearish trend lines forming with resistances at $610 and $655 on the hourly chart of ETH/USD. Lastly, the 50% Fib retracement level of the last drop from the $651 high to $563 low is near the $507 level.
Looking at the chart, the price may consolidate in the short term around $580. However, buyers need to push the price above $600 and $620 to initiate a substantial recovery. On the downside, the recent low near $563 is a short term support followed by the $550 support zone.
Hourly MACD – The MACD is showing a few signs of a recovery in the bullish zone.
Hourly RSI – The RSI is correcting higher towards the 45 level.
Major Support Level – $560
Major Resistance Level – $620