- ETH price declined sharply and traded below the $540 support area against the US Dollar.
- There is a connecting bearish trend line forming with resistance at $560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may correct a few points in the short term, but upsides are likely to be capped by $560.
Ethereum price declined heavily against the US Dollar and Bitcoin. ETH/USD almost tested the $500 level and is currently in a bearish zone.
Ethereum Price Decline
There was a nasty decline in ETH price from well above $600 against the US Dollar. The price traded lower by more than $100 and crashed below many support levels. It declined below the $570, $540 and $525 support levels to move into a bearish zone. It almost tested the $500 level and is currently struggling to recover. The recent low was formed near the $506 level, which means close to the last swing level.
An upside correction is underway, which could lead the price towards the $530 level. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $608 high to $506 low. Above this, there are many hurdles near the $560 level. There is also a connecting bearish trend line forming with resistance at $560 on the hourly chart of ETH/USD. Moreover, the 50% Fib retracement level of the last decline from the $608 high to $506 low is also near the same level.
Looking at the chart, the price may correct a few points in the short term, but it could face a lot of barriers near $540 and $560. On the downside, the recent low of $506 is a short-term support. Below this, the price may even break $500.
Hourly MACD – The MACD is placed heavily in a bearish zone.
Hourly RSI – The RSI is currently placed near the oversold levels with a lot of bearish signs.
Major Support Level – $500
Major Resistance Level – $560