Ethereum price is consolidating above the USD 1,550 support against the US dollar. ETH could fall heavily if the bulls fail to protect USD 1,550 and USD 1,540.
- Ethereum is struggling to mount a recovery wave from $1,550.
- The price is trading below $1,585 and the 100-hourly Simple Moving Average.
- Two bearish trendlines are forming with resistance around $1,565 and $1,590 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a recovery wave if the bulls defend the USD 1,550 support zone.
Ethereum price faces resistance
Ethereum remained in a bearish zone below the USD 1,600 resistance zone. ETH is still consolidating above the $1,550 support and showing bearish signs, just like Bitcoin.
The recent low was formed around $1,542 before the price entered a consolidation phase. The price once peaked above the 23.6% Fib retracement level of the key decline from the $1,665 swing high to the $1,542 low, but the upside was limited.
Ethereum is now trading below $1,585 and the 100-hourly Simple Moving Average. There are also two bearish trend lines forming with resistance around $1,565 and $1,590 on the hourly chart of ETH/USD.
On the upside, the price could encounter resistance near the USD 1,565 level and the first trendline. The first major resistance is near the second trendline, $1,590, and the 100-hour Simple Moving Average. The next resistance is near $1,600 or the 50% Fib retracement level of the main decline from the $1,665 swing high to the $1,542 low.
Source: ETHUSD on TradingView.com
A clear move above the USD 1,600 resistance could trigger a near-term recovery wave. In the mentioned case, Ether could rise and recover towards the USD 1,665 resistance. Any gains could open the doors for a move towards $1,750.
Lose more in ETH?
If Ethereum fails to clear the USD 1,600 resistance, it could continue to decline. The initial downside support is near the $1,550 level. The next major support is at USD 1,540.
A downside break below the $1,540 support could lead to another strong decline. In the mentioned case, the price could fall towards the USD 1,420 level. Any further losses could perhaps send Ether towards the USD 1,350 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,540
Major resistance level – $1,600
