TA: Ethereum Breaks Key Support, Why ETH Could Tumble To $1,500
Ethereum is gaining bearish momentum below $1,800 against the US Dollar. ETH price is likely to continue lower and it might even test the $1,500 level in the near term.
Ethereum started a fresh decline and it even traded below the $1,850 support zone.
The price is still trading well below the $1,800 resistance and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to continue lower below the $1,720 and $1,650 support levels in the near term.
Ethereum Price Accelerating Lower
Ethereum is clearly following a bearish path from well above $1,950, similar to bitcoin. ETH price broke the $1,900 support and it settled well below the 100 hourly simple moving average.
The price even declined below the $1,850 support and $1,800. A low is formed near $1,722 and the price is now showing signs of more losses in the near term. On the upside, an initial resistance is near the $1,770 level.
The 23.6% Fib retracement level of the recent drop from the $1,920 swing high to $1,722 low is also near $1,770. The next key resistance is near the $1,800 level. There is also a major bearish trend line forming with resistance near $1,820 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the recent drop from the $1,920 swing high to $1,722 low. To move into a positive zone, the price must climb above the $1,800 and $1,820 resistance levels.
Source: ETHUSD on TradingView.com
A proper break above the trend line resistance could initiate a move towards the $1,950 level. The next major resistance is near the $2,000 zone.
More Losses in ETH?
If Ethereum fails to recover above $1,770 and $1,820, it could continue to move down. An initial support on the downside is near the $1,720 level.
The first major support is near the $1,650 level. If ether fails to stay above the $1,650 support, it could decline towards the $1,600 support. Any more losses could set the pace for a drop towards the $1,500 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 20 level.
Major Support Level – $1,650
Major Resistance Level – $1,820