TA: Ethereum Lacks Momentum Above $600, Why Holders Are Still Safe - SMARTNAIRA

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Sunday 6 December 2020

TA: Ethereum Lacks Momentum Above $600, Why Holders Are Still Safe

Ethereum is facing a strong resistance near the $600 and $602 levels against the US Dollar. ETH price must settle above $602 to start a strong increase in the near term.

  • Ethereum climbed higher, but it is facing a strong selling interest near $600.
  • The price is currently consolidating below the $600 resistance and above the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $602 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could either start a strong rally above $602 or it might decline sharply towards $565.

Ethereum Price is Facing a Strong Barrier

In the past few sessions, Ethereum made a couple of attempts to gain bullish momentum above $600 and $605. However, ETH price failed to settle above $600 and traded in a broad range.

The last swing high was formed near $607 before the price corrected lower. There was a break below the $600 and $595 levels. Ether price even broke the 23.6% Fib retracement level of the upward move from the $565 swing low to $607 swing high.

There was a test of the 50% Fib retracement level of the upward move from the $565 swing low to $607 swing high at $585. The price is now consolidating below the $600 resistance and above the 100 hourly simple moving average.

Ethereum Price

There is also a major bearish trend line forming with resistance near $602 on the hourly chart of ETH/USD. To start a strong increase, ether must clear the $600 and $602 resistance levels. The next major resistance is near the $620 level, above which the bulls are likely to aim a new yearly high above the $636 level.

Downside Break in ETH?

If ethereum fails to clear the $600 and $602 resistance levels, there is a risk of a bearish reaction. The first key support is near the $592 level and the 100 hourly simple moving average.

A downside break below the 100 hourly SMA could lead the price towards the $585 support. Any more losses might start a steady decline towards the main $565 support zone in the near term.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly losing momentum in the bearish zone.

Hourly RSI The RSI for ETH/USD is currently declining and it is just below the 50 level.

Major Support Level – $585

Major Resistance Level – $602



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