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.
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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
