TA: Ethereum Bears Aim Big After Recent Breakdown Below $1,600

Ethereum declined heavily below the $1,750 support against the US Dollar. ETH is showing bearish signs and remains at a risk of more losses below $1,550.

Ethereum started a fresh decline and traded below the $1,600 level.
The price is now trading below $1,650 and the 100 hourly simple moving average.
There was a break above a connecting bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move down if it stays below the $1,700 resistance zone.

Ethereum Price Turns Bearish

Ethereum started a major decline below the $1,700 level. ETH traded below the $1,650 support zone to move further into a bearish zone.

It opened the doors for a move below the $1,600 level. Finally, the price traded as low as $1,524 before the bulls appeared. It started an upside correction and traded above the $1,580 level. There was a break above a connecting bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD.

Ether price climbed above the 23.6% Fib retracement level of the key decline from the $1,878 swing high to $1,524 low. However, the bears were active near the $1,650 zone.

The price is now trading below $1,650 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,625 level. The first major resistance is now forming near the $1,650 level. The next major resistance is near the $1,700 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the key decline from the $1,878 swing high to $1,524 low is also near the $1,700 level. A clear move above the $1,700 resistance could even push the price above the $1,750 resistance.

More Losses in ETH?

If ethereum fails to rise above the $1,700 resistance, it could continue to move down. An initial support on the downside is near the $1,550 zone.

The next major support is near $1,525, below which ether price might accelerate lower. In the stated case, the price may perhaps decline towards the $1,465 level. Any more losses may perhaps open the doors for a move towards the $1,420 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,525

Major Resistance Level – $1,650