Ethereum started a sharp decline from well above $650 against the US Dollar. ETH price settled below the key $635 support zone, which may now act as a resistance in the near term.
- Ethereum started a fresh decline and traded below the $620 and $630 support levels.
- The price is now trading well below $630 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $633 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but it is likely to face sellers near $630 and $635.
Ethereum Price is Holding the $600 Support
After another rejection near $670, Ethereum started a downward move similar to bitcoin. ETH broke the $650 support level to start the current decline. There was a clear break below the $620 and $630 support levels.
It opened the doors for more downsides below $610. Ether even spiked below the $600 support level and settled well below the 100 hourly simple moving average. A low is formed near the $597 level and the price is currently consolidating losses.
It recovered above the $610 level, and the 23.6% Fib retracement level of the recent decline from the $648 swing high to $597 low. An initial resistance on the upside is near the $620 and $622 levels.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $648 swing high to $597 low is also near $622. The main resistance is now forming near the $630 zone and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $633 on the hourly chart of ETH/USD.
A clear break above the $630 and $635 resistance levels is must to decrease the current bearish pressure. In the stated case, the price could easily recover towards the $650 and $660 levels.
More Downsides in ETH?
If ethereum struggles to surpass the $622 and $630 resistance levels, it could continue to move down. An initial support on the downside is near the $605 level.
The first major support is near the $600 level. A close below the $600 and $595 support levels might open the doors for a larger decline towards the $580 and $575 levels in the near term.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just above the 45 level.
Major Support Level – $600
Major Resistance Level – $635