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Ethereum Became Vulnerable As $600 Level Could Prevent Its Rise

12/24/2020

Ethereum became vulnerable as the $600 level now acts as a stop for further increasing of the price. ETH faced an increase in selling and dropped to $550 against the US dollar with the ETH price correcting higher while more upsides are likely to remain below $590 as we can see in today’s ETH price news.

It declined sharply below the $600 level and the $580 support levels as Ethereum became vulnerable below these levels. The price is recovering from the $550 level below the 100 hourly simple moving average and a key bearish trend line that formed with the resistance of $592 on the hourly charts of the pair that could resume its drop as long as it is below $595. Ripple saw a huge decline below $0.400 and $0.300 that resulted in bearish moves in BTC and ETH with Ethereum’s price crashing below $600 and $580 support levels.

eth chart
Chart of ETH’s price action over the past few weeks with the recent price action on the right of the chart.

The drop was such that the price spiked below $565 support and settled below the 100 hourly simple moving average and tested the $550 support level which started the upside correction. There was a break above the $565 level and the price recovered above the 23.6% fib retracement level from the decline of the $539 high to the $550 swing low but the price faced many hurdles near the $590. There’s also a key bearish trend line formed with resistance near $592 on the chart of the pair. The trend is close to the 50% fib retracement level from the drop of the $539 high to the $550 swing low.

eth.usd
Source ETHUSD on TradingView.com

Breaking above the $595 and the $600 resistance level could now open the doors for more upsides as the next major resistance nearing the $620 level and the 100 hourly simple moving average. If ETH fails to surpass the $595 and the $600 resistance levels, it could start a fresh drop with initial support on the downside nearing the $570 level. the first major support is near the $565 level with the main support nearing the $550 level below which there’s a risk of a sharp decline with the price revisiting the $520 support zone.

ETH now trades at $590 but traded as low as $550 in just 30 minutes on leading centralized exchanges. The market move strongly with the cryptocurrency not being able to reach the level on decentralized exchanges.