When Ethereum failed to reach $1,700, it began a precipitous drop versus the US dollar. ETH fell more than 7% and below the $1,540 support level. Ethereum began a significant slide below the $1,600 and $1,540 support levels. The price has dropped below $1,600 and the 100 hourly simple moving average.
On the hourly chart of ETH/USD, there was a break below a robust bullish trend line with support near $1,570. The pair must remain above the $1,500 support level to avoid further losses in the immediate term.
Ethereum’s Gains Have Been Reduced
Ethereum has broken over the $1,620 and $1,650 resistance levels, but ETH failed to break beyond the $1,700 resistance level. A peak was formed near $1,686, followed by a severe bearish wave, similar to bitcoin.
The price fell below the $1,620 and $1,600 resistance levels. On the hourly chart of ETH/USD, there was a break below a strong bullish trend line with support near $1,570. The pair also broke over the $1,540 support level and the 100 hourly simple moving average. The price of ether has dropped below $1,500, with a low of $1,490. It is now accumulating losses above the $1,500 mark. The $1,520 level is immediate upward resistance.
The next significant resistance level is presently emerging near $1,540. It is close to the 23.6% Fib retracement level of the recent drop from the $1,686 swing high to the $1,490 low. A decisive move above $1,540 could take the price towards the $1,565 area.
Next Major Barrier is Located Near $1,585
It is close to the 50% Fib retracement level of the latest slide from the swing high of $1,686 to the low of $1,490. Any further advances could pave the way for a move towards the $1,620 resistance in the near future.
More ETH losses?
If Ethereum fails to break through the $1,540 barrier level, it may continue to fall. On the downside, initial support is nearly $1,500. The next significant support level is $1,480.
A close below $1,480 might push the price of ether towards $1,420. Any further losses might send the price down to $1,350. Good luck!
Read More: Ethereum to Gain Support at $1,490 – Quick Technical Outlook