TA: Ethereum Breaks Key Support, Why ETH Could Decline Further
Ethereum broke the major $1,750 and $1,710 support levels against the US Dollar. ETH price is likely to continue lower below the $1,660 and $1,650 support levels.
- Ethereum failed to stay above the key $1,750 and $1,710 support levels.
- The price is currently trading well below $1,710 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,765 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but the previous support near $1,750 could prevent gains.
Ethereum Price Turns Red
Ethereum failed to clear the key $1,850 resistance zone and started a fresh decline, similar to bitcoin. ETH broke the $1,750 support zone to move into a bearish zone.
The price even cleared the $1,710 support level and settled below the 100 hourly simple moving average. It even broke the $1,680 level and traded as low $1,657. It is currently correcting higher and trading above the $1,680 level.
Ether corrected above the 23.6% Fib retracement level of the recent decline from the $1,808 high to $1,657 low. On the upside, the first major resistance is near the $1,710 level. The next key resistance is near the $1,730 level.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $1,808 high to $1,657 low is also near $1,730. The main resistance is now forming near the $1,750 zone (the recent breakdown zone). If the price breaks the $1,730 and $1,750 resistance levels, it could start a decent increase towards $1,800 or even $1,850. An intermediate resistance could be near the $1,780 level or the 100 hourly simple moving average.
More Losses in ETH?
If Ethereum fails to climb above the $1,730 and $1,750 resistance levels, it could continue to move down. An initial support on the downside is near the $1,665 level.
The next major support is near the $1,650 level. A clear downside break below the $1,650 support may possibly open the doors for a drop towards the $1,600 level. Any more losses will most likely push the price towards the key $1,550 support in the coming days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,650
Major Resistance Level – $1,750
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