Ethereum Price Weekly Analysis: ETH/USD Approaching Crucial Break

Key Highlights

  • ETH price settled below the $600 support level with negative signs against the US Dollar.
  • There is a crucial contracting triangle forming with current support at $580 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair may well make the next move either above $600 or below $580 in the near term.

Ethereum price is struggling to recover versus the US Dollar and Bitcoin. ETH/USD is now approaching a crucial break, possibly higher if buyers gain control.

Ethereum Price Trend

There were heavy losses in ETH price from the $724 swing high this past week against the US Dollar. The price failed to hold a major support area near $637 and declined sharply. The decline was such that the price broke the $600 and $575 support levels. A low was formed at $543 from where the price started a minor upside correction above $560.

It recovered and moved above the 23.6% Fib retracement level of the last decline from the $724 high to $543 low. However, the upside move was capped by the $610-612 resistance zone. Moreover, the 38.2% Fib retracement level of the last decline from the $724 high to $543 low acted as a strong barrier for buyers and prevented gains. At the moment, it seems like there is a crucial contracting triangle forming with current support at $580 on the 4-hours chart of ETH/USD. The pair seems to be trading in a range above $580 and is preparing for the next move.

The above chart indicates that the price is currently under slight bearish pressure. If it fails to hold the $580 and $575 support levels, there may be sharp declines back towards $540. On the flip side, a break above the $600 level may open the doors for push towards the $637 pivot level.

4-hours MACD – The MACD is slightly placed in the bullish zone.

4-hours RSI – The RSI is currently well below the 50 level.

Major Support Level – $575

Major Resistance Level – $600

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