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Ethereum started a downside correction from the $620 zone against the US Dollar. ETH price is now trading near a major support at $580 and the 100 hourly SMA
- Ethereum started a downside correction after it failed to clear the $620 and $625 resistance levels.
- The price traded below the $600 support, but it is still above the 100 hourly simple moving average.
- There is a key declining channel forming with resistance near $600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could either climb above $600 or extend its decline towards the $550 support level.
Ethereum Price Corrects Lower
There were two attempts by Ethereum to surpass the $620 resistance level, but it failed. As a result, there was a bearish reaction and the price broke the $612 and $600 support levels.
The decline gained pace below the $600 support level and the price even broke the $585 level. Ether found support near the $580 level (the last key breakout zone) and it is still well above the 100 hourly simple moving average.
The price is currently consolidating losses above the $580 support. It is testing the 23.6% Fib retracement level of the recent decline from the $612 swing high to $580 swing low.
Source: ETHUSD on TradingView.com
On the upside, there is a major resistance forming near the $600 level. There is also a key declining channel forming with resistance near $600 on the hourly chart of ETH/USD. The channel resistance coincides with the 50% Fib retracement level of the recent decline from the $612 swing high to $580 swing low.
A successful break above the channel resistance could start a fresh increase above $605. The next major resistance is near $612, above which ether is likely to revisit the $620 resistance zone.
More Losses in ETH?
If ethereum fails to break the $600 resistance level, there could be more losses. The first major support is near the $580 level, below which the price could test the 100 hourly simple moving average at $570.
A clear break below the 100 hourly simple moving average may perhaps spark a larger downside correction below $565. The next major support could possibly be near the $550 level.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $580
Major Resistance Level – $600
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal