TA: Ethereum Stable Above $600, Why ETH Could Struggle Near $635

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Ethereum started a sharp decline from well above $650 against the US Dollar. ETH price settled below the key $635 support zone, which may now act as a resistance in the near term.

• Ethereum started a fresh decline and traded below the $620 and $630 support levels.
• The price is now trading well below $630 and the 100 hourly simple moving average.
• There is a major bearish trend line forming with resistance near $633 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could correct higher, but it is likely to face sellers near $630 and $635.

Ethereum Price is Holding the $600 Support

After another rejection near $670, Ethereum started a downward move similar to bitcoin. ETH broke the $650 support level to start the current decline. There was a clear break below the $620 and $630 support levels.

It opened the doors for more downsides below $610. Ether even spiked below the $600 support level and settled well below the 100 hourly simple moving average. A low is formed near the $597 level and the price is currently consolidating losses.

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It recovered above the $610 level, and the 23.6% Fib retracement level of the recent decline from the $648 swing high to $597 low. An initial resistance on the upside is near the $620 and $622 levels.

The 50% Fib retracement level of the recent decline from the $648 swing high to $597 low is also near $622. The main resistance is now forming near the $630 zone and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $633 on the hourly chart of ETH/USD.

A clear break above the $630 and $635 resistance levels is must to decrease the current bearish pressure. In the stated case, the price could easily recover towards the $650 and $660 levels.

More Downsides in ETH?

If ethereum struggles to surpass the $622 and $630 resistance levels, it could continue to move down. An initial support on the downside is near the $605 level.

The first major support is near the $600 level. A close below the $600 and $595 support levels might open the doors for a larger decline towards the $580 and $575 levels in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently just above the 45 level.

Major Support Level – $600

Major Resistance Level – $635