TA: Ethereum Starts Corrective Decrease, Why Recovery Could Be Limited

Ethereum formed a short-term top near $620 and started a sharp decline against the US Dollar. ETH price is correcting gains and it could revisit the $500 support zone. Ethereum started a downside correction after it failed to stay above the $580 support. The price traded below the $550 support and the 100 hourly simple […]

TA: Ethereum Starts Corrective Decrease, Why Recovery Could Be Limited

Ethereum formed a short-term top near $620 and started a sharp decline against the US Dollar. ETH price is correcting gains and it could revisit the $500 support zone. Ethereum started a downside correction after it failed to stay above the $580 support. The price traded below the $550 support and the 100 hourly simple moving average. There was a break below a major declining channel with support near $565 on the hourly chart of ETH/USD (data feed via Kraken). The pair tested the $507 level and it seems like there are chances of more downsides. Ethereum Price Corrects Lower After forming a short-term top near the $620 level, Ethereum started a sharp downside correction. ETH settled below the $600 level and it failed to stay above the $580 support level. A clear break below the $580 support level sparked a strong decline (similar to bitcoin). Ether price declined heavily below the $550 support and it even settled well below the 100 hourly simple moving average. There was also a break below a major declining channel with support near $565 on the hourly chart of ETH/USD. The price declined below the $520 support and traded as low as $507. It is currently recovering higher and trading above the $525 level. Ether is testing the 23.6% Fib retracement level of the recent decline from the $605 swing high to $507 low.