TA: Ethereum Dives Below $1,500, Why Bulls Are Losing Control - SMARTNAIRA

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Thursday, 4 March 2021

TA: Ethereum Dives Below $1,500, Why Bulls Are Losing Control

Ethereum failed to stay above $1,600 and it even traded below $1,500 against the US Dollar. ETH price is showing bearish signs and it could continue to move down towards $1,400.

  • Ethereum started a fresh decline below the $1,550 and $1,500 support levels.
  • The price is now trading well below $1,550 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher, but upsides are likely to be limited above $1,550.

Ethereum Price Trims Gains

Ethereum failed to stay above the $1,600 support and started a fresh decline. ETH broke the $1,580 and $1,550 support levels to move into a bearish zone.

There was a break below a crucial bullish trend line with support near $1,560 on the hourly chart of ETH/USD. It opened the doors for a drop below $1,500. The pair spiked below the $1,450 support and settled well below the 100 hourly simple moving average.

A low is formed near $1,441 and the price is consolidating losses. An initial resistance is near the $1,520 level. It is close to the 50% Fib retracement level of the recent decline from the $1,598 swing high to $1,441 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $1,550 level and the 100 hourly simple moving average. The 61.8% Fib retracement level of the recent decline from the $1,598 swing high to $1,441 low is also near $1,550. Moreover, there is a major bearish trend line forming with resistance near $1,560 on the same chart.

To move into a positive zone, ether price must clear $1,550, the 100 hourly SMA, and the trend line resistance. The next key resistance could be near $1,600.

More Losses in ETH?

If Ethereum fails to continue higher above the $1,520 and $1,550 resistance levels, it could resume its decline. An initial support on the downside is near the $1,450 level.

A proper downside break and close below $1,450 could clear the path for a push below $1,400. In the stated case, ether price could even test the $1,375 support zone in the near term.

Technical Indicators

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

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

Major Support Level – $1,450

Major Resistance Level – $1,550



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