Key Highlights
- ETH price declined further and failed to hold the $500.00 handle against the US Dollar.
- This week’s followed important bearish trend line acted as a barrier near $540 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair declined below the $500 handle and it may accelerate declines in the near term.
Ethereum price is struggling to recover against the US Dollar and Bitcoin. ETH/USD traded below the $500 level and it remains at a risk of more losses.
Ethereum Price Decline
There was a minor upside recovery above the $520 level in ETH price against the US Dollar. The price corrected towards the $530 and $540 levels, where sellers defended more gains. There was a failure to break the $540 resistance area. Moreover, the 61.8% fib retracement level of the last drop from the $566 high to the $503 low, which ignited a downside reaction.
More importantly, this week’s followed important bearish trend line acted as a barrier near $540 on the hourly chart of ETH/USD. The pair faced a solid selling interest near the $540 level. It declined and moved below the $520 and $510 support levels. The downside move was strong as the price declined below the $505 swing low and broke the $500 handle. After the $500 level break, the price moved further into the bearish zone towards $440. It traded towards the $480 level recently and formed a low at $483. If it corrects higher, the 38.2% Fib retracement level of the last drop from the $545 high to $483 low may act as a hurdle.
Looking at the chart, the current price action is super bearish and the recent break below $500 could put a lot of pressure on Ether buyers. The next supports area at $465 and $440.
Hourly MACD – The MACD is gaining pace in the bearish zone.
Hourly RSI – The RSI is in the extreme oversold levels with no signs of a recovery.
Major Support Level – $465
Major Resistance Level – $505
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