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Ethereum Stabilized Above $600, It Could Struggle Near $635

12/22/2020

Ethereum stabilized above $600 after starting a sharp decline from well above $650. The price was able to settle below the $635 support zone which is most likely the next resistance in the near-term so let’s read more in our latest Ethereum news.

Ethereum started a fresh decline and even traded below the $620 and the $630 support levels with the price trading well below the $630 and the 100 hourly simple moving average and a bearish major trend line forming with the resistance near $633 on the hourly charts of the pair. ETH/USD could correct higher but will face the sellers close to the $635 level.

ETH daily
Ethereum 24-hour Price Chart (Source: Coingecko)

After another rejection close to the $670 level, ETH started a downside move similar to the one of BTC. ETH broke the $650 support level to start a current decline with a clear break below the $620 and the $630 support levels. This movement opened the doors for more downsides below the $610 before it spiked below the $600 support and settled well below the 100 hourly simple moving average. A new low was formed near the $597 level and the price is consolidating ever since.

Ethereum stabilized above $600 as it recovered above $610 and the 23.6% fib retracement level from the decline at $658 swing high to the $597 low. the initial resistance on the upside is close to the $620 level as well. The 50% fib retracement level from the recent decline at the$648 swing high to the $597 low which is also near the $622. The main resistance is forming close to the $630 level and the 100 hourly simple moving average. There’s also a major bearish trend line that is forming with the resistance near $633 on the hourly charts of the pair.

eth weekly chart
ETH 7-Day Price Chart (Source: Coingecko)

A clear above the $630 and the $635 resistance level has to be overcome in order to decrease the current bearish pressure. The price will likely recover to the $650 level and the $660 level as well. If ETH struggles to surpass the $622 and the $630 resistance levels, ETH could continue going down with the initial support nearing the $605 level. The first major support is near the $600 level while a close below the $600 could open the doors for more drops near the $580 level in the near-term. the hourly MACD for the pair is slowly losing momentum in the bearish zone while the hourly RSI is well above 45 level.