Ether’s price settled with negative signs against the USD below $600. The price has formed a contracting triangle with $580 as the support level on the 4-hour chart. In the near term, the pair will either go above $600 or below $580.
Ethereum Price Analysis on the Chart
Over the past week, Ethereum’s price suffered a swing from its initial $724 high. However, it was unable to hold the $637 support level and fell below $600 and $575. Ether has formed a new low at $543, but it started an upward correction at $560.
After the recovery, it moved above the 23.6% retracement level that was formed during the last decline from $724 to $543. Unfortunately, it was capped by the $610-612 zone.
There was a strong barrier for buyers at the 38.2% retracement level from the last $724 to $543 decline. This prevented buyers from making gains. There is currently a significant contracting triangle at the $580 support level. The Ether to USD trading pair is trading above $580 as it is preparing for another move.
The price chart shows that Ether’s price is presently under some bearish pressure. If it doesn’t hold above the $580 and $575 support levels, it will most likely decline further towards $540. However, if it can break above the significant $600 level, the doors may be open to more growth and the price may be pushed above the pivot level of $637.
What do the Technical Indicators Say?
From the technical indicators, the MACD is currently in a slightly bullish zone while the relative strength index is below the 50 level. Traders should look out for the next major support level of $575 and the next major resistance at $600.
The next few trading sessions are crucial as they would determine if Ethereum will make the significant break upward or downward. Traders can only wait and see.
Ethereum isn’t the only coin struggling in the cryptocurrency market. Others like Bitcoin and Bitcoin Cash are also facing challenges.