Ethereum Bulls Face Crucial Test: Will $1,550 Withstand the Pressure?
Ethereum price is consolidating above the $1,550 support against the US dollar. ETH could decline heavily if the bulls fail to protect $1,550 and $1,540.
Ethereum is struggling to start a recovery wave from $1,550.
The price is trading below $1,585 and the 100-hourly Simple Moving Average.
There are two bearish trend lines forming with resistance near $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 $1,550 support zone.
Ethereum Price Faces Resistance
Ethereum remained in a bearish zone below the $1,600 resistance zone. ETH is still consolidating above the $1,550 support and showing bearish signs, like Bitcoin.
The recent low was formed near $1,542 before the price started a consolidation phase. The price spiked once above the 23.6% Fib retracement level of the key decline from the $1,665 swing high to the $1,542 low, but upsides were 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 near $1,565 and $1,590 on the hourly chart of ETH/USD.
On the upside, the price might face resistance near the $1,565 level and the first trend line. The first major resistance is near the second trend line, $1,590, and the 100-hourly Simple Moving Average. The next resistance is near $1,600 or the 50% Fib retracement level of the key decline from the $1,665 swing high to the $1,542 low.
Source: ETHUSD on TradingView.com
A clear move above the $1,600 resistance might start a short-term recovery wave. In the stated case, Ether could rise and recover toward the $1,665 resistance. Any more gains might open the doors for a move toward $1,750.
More Losses in ETH?
If Ethereum fails to clear the $1,600 resistance, it could continue to move down. Initial support on the downside is near the $1,550 level. The next key support is $1,540.
A downside break below the $1,540 support might spark another strong decline. In the stated case, the price could drop toward the $1,420 level. Any more losses may perhaps send Ether toward the $1,350 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,540
Major Resistance Level – $1,600
Filed under: Bitcoin - @ October 12, 2023 4:51 am