Key Highlights
- ETH price is under pressure as it moved below the $560 support level against the US Dollar.
- There was a break below a major bullish trend line with support at $560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may continue to decline and it could even attempt a break below the $500 level in the near term.
Ethereum price is slowly declining once again against the US Dollar and Bitcoin. ETH/USD remains at a risk of more declines below the $500 level.
Ethereum Price Resistance
There were no further gains above the $585-590 levels in ETH price against the US Dollar. The price started a downside move and traded below the $575 and $560 support levels. There was also a break below the 23.6% Fib retracement level of the last wave from the $455 low to $589 high. During the decline, the price also broke the $540 level and it is currently well below the 100 hourly simple moving average.
More importantly, there was a break below a major bullish trend line with support at $560 on the hourly chart of ETH/USD. At the moment, the pair is trading a few points below the 50% Fib retracement level of the last wave from the $455 low to $589 high. It may continue to decline in the short term and there is a risk of a break below of the $500 support. Below $500, the price may trade lower towards the 76.4% Fib retracement level of the last wave from the $455 low to $589 high at $487.
On the upside, there is a connecting bearish trend line with current resistance at $554.00. Moreover, the 100 hourly SMA is positioned at $552 to act as a major hurdle for buyers.
Hourly MACD – The MACD is now in the bearish zone.
Hourly RSI – The RSI is currently well below the 60 level.
Major Support Level – $500
Major Resistance Level – $550
Charts courtesy – Trading View
