The price of Ethereum fell sharply against the US dollar, breaking down significantly below the $1,750 support level. This is consistent with a bearish trend for the cryptocurrency. There is a possibility that ETH will experience more losses below the $1,550 mark.
The price of Ethereum started a new downward trend and traded at a level lower than $1,600.
The price has fallen below $1,650 recently and is currently trading below the 100 hourly simple moving average as well.
On the hourly chart of ETH/USD, a connecting negative trend line with resistance at $1,580 was broken above. The resistance level was located at $1,580. If the price of the pair stays lower below the resistance level of $1,700, it will most likely continue falling.
Bearish Signs Have Been Observed in Ethereum, and the Price Continues to Decline
The price of Ethereum has just started to drop much lower than $1,700. The price of ETH is now in a negative zone after it broke below the support line at $1,650.
It made it possible for the price to fall under the $1,600 barrier. Last but not least, the price fell all the way down to $1,524 before the bulls took control. It started moving in the right direction and eventually traded higher than 1,580 dollars. There was a break above a connecting negative trend line with resistance near $1,580 on the left side of the chart of ETH/USD. The opposition was located near $1,580.
Chart of the price of Ethereum over the past 24 hours. CoinGecko is the cited source.
The price of ETH increased to a point where it was able to break above the 23.6% Fib retracement line of the significant drop that occurred between the swing high of $1,878 and the low of $1,524. However, activity was seen from the Bears near the $1,650 level.
The price has fallen below $1,650 recently and is currently trading below the 100 hourly simple moving average as well. The level of $1,625 acts as an immediate barrier to further gains in price. The first substantial obstacle has already begun to materialize at the $1,650 price point. The price of $1,700 and the 100-hourly simple moving average represent the subsequent big obstacle.
The 50% Fibonacci reconstruction level of the critical drop that began at the swing high of $1,878 and ended at the low of $1,524 is very close to the price of $1,700. In the event that the price successfully breaks through the psychological barrier located at $1,700, it is possible that it will then move above the level located at $1,750.
If Ethereum is unable to break through the $1,700 barrier, the price may continue to decline. When looking at the chart from a bearish perspective, the initial support level is located around $1,550.
The next important resistance is located at $1,525, and if it is broken, then the price of ether could start to decrease. In the scenario that was just outlined, there is a possibility that the price will drop to $1,465 or below. Should there be any further losses, it might open the door for a move closer to the $1,420 mark.