ETH’s price is currently correcting upward after suffering a sharp decline in recent days. This downward shift saw it reach the 500 USD level against the USD. The charts highlighted that the critical bearish trend line remained intact with resistance at the 545 USD level on the ETH/USD hourly chart. The pair maintained its shift upward and continued moving higher near the 540 USD and 545 USD resistance levels via the near term. After looking at the chart, we can see Ethereum’s price is recovering against Bitcoin and the USD. The cryptocurrency is highly likely going to face more sellers on the upside close to the 540 USD and 545″ USD support zones.
Analyzing Ethereum’s Price Resistance
After a period that saw ETH suffer a sharp decline in prices, the cryptocurrency found support near the 500 USD resistance level against the USD. The ETH/USD price traded at 503.04 USD before forming short-term support. Eventually, the pair started an upside correction. It went on to trade above the 515 USD resistance level. We can also see a break beyond the 23.6% Fibonacci retracement level from the last decline beginning from 565 USD and swinging to a 503 USD low.
We can also see many barriers via the upside close to the 540 USD level. Plus yesterday’s highlighted key bearish pattern is intact with resistance levels at 545 USD on the Ethereum/USD hourly chart. The trend line resistance is in sync with the 50% Fibonacci retracement level from the last decline starting at 565 USD to a 503 USD low. Hence if prices continue to move higher, you will likely find sellers close to the 540 USD and 545 USD resistance levels. Above this, the next hurdle for buyers is close to the 560 USD resistance level.
From the chart, we can see that prices are showing recovery signs. However, the recovery could see massive selling interest via the upside below the 560 USD level. Looking at the downside, a shift below 500 USD could accelerate declines towards 450 USD.