Ethereum is struggling to clear the $1,650 resistance against the US Dollar. ETH remains at a risk of more downsides below the $1,500 support.
- Ethereum attempted to clear the $1,650 resistance but failed.
- The price is now trading below $1,630 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $1,605 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if there is a clear move below the $1,545 support zone.
Ethereum Price Turns Red
Ethereum started a minor upside correction from the $1,520 support zone. ETH climbed above the $1,550 and $1,600 levels.
The price even climbed above the $1,640 level and the 100 hourly simple moving average. There was a break above the 23.6% Fib retracement level of the key decline from the $1,880 swing high to $1,524 low. However, the bears were active above the $1,650 level.
There was no upside continuation above the $1,680 level. Ether price is now trading below $1,630 and the 100 hourly simple moving average. It is also testing the $1,600 support zone.
Besides, there is a key rising channel forming with support near $1,605 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,630 level. The first major resistance is now forming near the $1,650 level.
Source: ETHUSD on TradingView.com
A clear move above the $1,650 level could send the price towards the $1,700 resistance zone. It is near the 50% Fib retracement level of the key decline from the $1,880 swing high to $1,524 low. The next major resistance is near the $1,740 level, above which the price could rise and test the $1,800 resistance.
Fresh Drop in ETH?
If ethereum fails to rise above the $1,650 resistance, it could continue to move down. An initial support on the downside is near the $1,600 zone and the channel trend line.
The next major support is near $1,545, below which ether price might accelerate lower. In the stated case, the price may perhaps decline towards the $1,500 level. Any more losses may perhaps open the doors for a move towards the $1,450 level.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,545
Major Resistance Level – $1,650
Original Source: https://www.newsbtc.com/analysis/eth/ethereum-remains-vulnerable-below-1600/
Author : Aayush Jindal