Ethereum Price Extended Losses But It’s Too Early to Say Bulls Have Given Up

Ethereum extended its decline after the fed rate decision against the US Dollar. ETH tested the $1,500 support and is currently correcting losses.

• Ethereum extended decline below the $1,550 support zone and tested $1,500.
• The price is now trading below $1,580 and the 100 hourly simple moving average.
• There is a key major bearish trend line forming with resistance near $1,580 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain bullish momentum if it clears the $1,580 and $1,600 resistance levels.

Ethereum Price Eyes Increase

Ethereum failed to gain pace for a move above the $1,600 resistance zone. ETH corrected lower and traded below the $1,550 support zone after the fed increased rates by 75bps.

The price tested the $1,500 support zone. A low is formed near the $1,501 level and the price is now correcting losses. There was a move above the $1,520 and $1,540 levels. Ether price corrected above the 23.6% Fib retracement level of the recent decline from the $1,619 swing high to $1,501 low.

The price is now trading below $1,580 and the 100 hourly simple moving average. There is also a key major bearish trend line forming with resistance near $1,580 on the hourly chart of ETH/USD.

An immediate resistance on the upside is near the $1,560 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $1,619 swing high to $1,501 low. The first major resistance is near the $1,580 level and the bearish trend line.

Source: ETHUSD on TradingView.com

A clear break above the bearish trend line and then $1,600 could set the pace for a decent increase. In the stated case, the price could rise to the $1,650 level. Any more gains might send the price toward the $1,700 resistance zone.

Fresh Decline in ETH?

If ethereum fails to climb above the $1,580 resistance, it could start another decline. An initial support on the downside is near the $1,525 level.

The first major support is near the $1,500 level. A downside break below the $1,500 zone might increase selling pressure. In the stated scenario, the price could decline towards the $1,420 support zone in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,500

Major Resistance Level – $1,580