Ethereum Initiated Corrective Decline, Recovery Could Be Limited

Ethereum initiated corrective decline recently and formed a short-term drop near the $620 level before starting a sharp decline against the US dollar. The ETH price is correcting the gains and could even visit the $500 support zone so let’s check up on the latest Ethereum price news.

Ethereum started a downside correction after failing to stay above the $580 support so the price even traded below the $550 support and the 100 hourly simple moving average. There was also a break below the major declining channel with support nearing the $565 on the hourly charts of the pair. The ETH/USD pair tested the $507 level and it seems like there are even more chances of more downsides.

After forming the short-term top near the $620 level, Ethereum initiated a corrective decline below the $600 level and it failed to stay above the $580 support level. Breaking below the $580 support level sparked a strong decline below the $550 support and settled well below the 100 hourly simple moving average. There was also a break below the major declining channel near the support of $565 on the hourly charts of the pair. The price declined below the $520 support and even traded as low as $507 with it now recovering higher and trading above the $525 level. ETH is testing the 23.6% fib retracement level from the recent decline at the $605 swing high to the $507 low. On the upside, there’s also a major resistance forming near the $550 and the $555 levels. The 50% fib retracement level from the decline at $605 swing high to $507 low is near the $555 level with the main resistance level forming near the $580 level.

If Ethereum fails to recover above the $550 resistance there could even be more losses. The first major support is nearing the $515 level below which the price will retest the $507 low. The main support is nearing the $500 handle so a new break below the $500 could handle a substantial decrease. In the previously mentioned case, the price could test the $450. The MACD for the pair is gaining momentum in the bearish zone while the RSI is well below the 30 levels. The major support level is set at $500 while the major resistance level is set at $550.