10 October 2023
Ethereum price struggled to clear $1,660 and reacted to the downside against the US dollar. ETH remains at risk of more losses if it breaks the $1,550 support.
Ethereum resumed its decline and retested the $1,550 support.
The price is trading below $1,600 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate lower if there is a close below the $1,550 support zone.
Ethereum Price Dives Again
Ethereum failed to settle above the $1,665 resistance zone. ETH started a fresh decline from the $1,665 resistance zone and dived below the $1,650 level.
The bears pushed the price below the $1,600 level and the 100-hourly Simple Moving Average. Ether retested the $1,550 support. A low was formed near $1,549 and the price is now attempting a recovery wave. There was a move above the 23.6% Fib retracement level of the recent decline from the $1,664 swing high to the $1,549 low.
Ethereum is now trading below $1,600 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,610 on the hourly chart of ETH/USD.
On the upside, the price might face resistance near the $1,600 level. The first major resistance is near the trend line and $1,610. It is close to the 50% Fib retracement level of the recent decline from the $1,664 swing high to the $1,549 low.
Source: ETHUSD on TradingView.com
The next major resistance is $1,620 or the 100-hourly Simple Moving Average, above which the price could rise toward the $1,665 resistance zone. A close above the $1,665 resistance might send the price toward the key resistance at $1,750. The next key resistance might be $1,820. Any more gains might open the doors for a move toward $1,880.
Downside Break in ETH?
If Ethereum fails to clear the $1,600 resistance, it could continue to move down. Initial support on the downside is near the $1,565 level. The next key support is $1,550.
A downside break below the $1,550 support might start another strong decline. In the stated case, the price could revisit the $1,465 level. Any more losses may perhaps send Ether toward the $1,420 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,550
Major Resistance Level – $1,620