Ethereum has no momentum above the $600 price range and is facing strong resistance at the $600 and $602 level against the US Dollar. The price has to settle above these levels in order to start an increase in the near-term as we are reading more in today’s Ethereum news.
Ethereum climbed higher, but it has a hard time facing a strong selling pressure near $600. The price is consolidating below the $600 resistance and above the 100 hourly simple moving average with a bearish trend line forming with resistance close to $602 on the hourly chart of the ETH/USD that could start a strong rally above $602 or it could decline sharply below $565. Over the past few sessions, Ethereum made a couple of attempts to gain bullish momentum above $605 but the price failed to settle and traded in a broad range.
The last swing high was formed at $607 before the price started correcting lower with a break below the $600 and $595 levels. Ether’s price broke the 23.6% fib retracement level from the upward movement at $565 swing low to $607 swing high. There was also a test of the 50% retracement level of the upward move from the $565 swing low to the $60 swing high and now the price is consolidating below the $600 resistance and above the 100 hourly simple moving average. There’s also a bearish trend line forming with the resistance at $602 on the charts of the pair. To start a strong increase, ETH has to clear the $602 resistance levels with the next major resistance nearing the $620 level above which the bulls will aim for a new yearly high above the $636 level.
If ETH fails to clear the $600 and the $602 resistance levels, there’s a risk of a bearish reaction with the first key support nearing the $592 level with the 100 hourly simple moving average. A downside break below the 100 hourly SMA will likely lead the price to the $585 support zone with more losses to start declining at the main $565 support in the near-term. Ethereum has no momentum for a new upside right now as the MACD for the pair is in the bearish zone while the hourly RSI is dropping below the 50 level.
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