Ethereum Price Plunge Imminent as Key Support Line Collapses

13 October 2023

Ethereum price is moving lower toward the $1,500 support against the US dollar. ETH could correct higher, but upsides might be limited above $1,565.

Ethereum is struggling to start a recovery above $1,550.
The price is trading below $1,565 and the 100-hourly Simple Moving Average.
There are two bearish trend lines forming with resistance near $1,555 and $1,570 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct higher, but the bears might remain active near $1,565.

Ethereum Price Extends Losses

Ethereum remained in a bearish zone below the $1,580 resistance zone. ETH failed to stay above the key $1,550 support and extended its decline, unlike Bitcoin.

The price traded to a new weekly low at $1,521. It seems like the price is slowly moving lower after it settled below $1,600. There are also two bearish trend lines forming with resistance near $1,555 and $1,570 on the hourly chart of ETH/USD.

Ethereum is now trading below $1,565 and the 100-hourly Simple Moving Average. There was a minor increase above the 23.6% Fib retracement level of the recent decline from the $1,595 swing high to the $1,521 low.

On the upside, the price might face resistance near the $1,555 level and the first trend line. The first major resistance is near the second trend line, $1,565, and the 100-hourly Simple Moving Average. It is close to the 61.8% Fib retracement level of the recent decline from the $1,595 swing high to the $1,521 low.

Source: ETHUSD on TradingView.com

A clear move above the $1,570 resistance might send the price toward the key resistance at $1,600. In the stated case, Ether could rise and recover toward the $1,665 resistance. Any more gains might open the doors for a move toward $1,750.

More Losses in ETH?

If Ethereum fails to clear the $1,565 resistance, it could continue to move down. Initial support on the downside is near the $1,520 level. The next key support is $1,500.

A downside break below the $1,500 support might send the price further lower. In the stated case, the price could drop toward the $1,440 level. Any more losses may perhaps send Ether toward the $1,420 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,500

Major Resistance Level – $1,565

Need help?

Please use the contact form to get support.