Key Highlights
- ETH price declined further and tested the $500-510 support area against the US Dollar.
- There is a major bearish trend line forming with resistance at $545 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may correct a few points from the current levels, but upsides may be capped by $545-550.
Ethereum price is struggling to recover against the US Dollar and Bitcoin. ETH/USD could consolidate around $520-545 for some time before the next move.
Ethereum Price Decline
There were nasty declines in ETH price below the $590 level against the US Dollar. The price declined sharply and broke a few important supports such as $560, $545 and $540. It tested the $500-510 support area where buyers appeared. However, the price is now trading well below the $555 pivot level and the 100 hourly simple moving average.
The recent low was near $505 before the decline was stopped. At the moment, the price is correcting higher and is testing the 23.6% Fib retracement level of the last decline from the $575 high to $505 low. However, there are many hurdles on the upside near $540-545. There is also a major bearish trend line forming with resistance at $545 on the hourly chart of ETH/USD. The 50% Fib retracement level of the last decline from the $575 high to $505 low is also near $540. Therefore, the $540-545 zone is likely to prevent any major gains from the current levels.
Looking at the chart, the price remains in a solid downtrend from the $590 swing high. On the downside, the $500 handle holds a lot of importance. A break below $505 and $500 may well clear the path for a push towards the $460 and $450 levels in the near term.
Hourly MACD – The MACD is slightly recovering in the bullish zone.
Hourly RSI – The RSI is correcting higher towards the 40 level.
Major Support Level – $500
Major Resistance Level – $545
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