Ethereum dropped below $500 before the bulls appeared near $480 against the US Dollar. But now, ETH price is getting back up but is likely to face a massive resistance near $550 and the 100 hourly SMA.
Ethereum began an upside correction right after starting strong support at $480.
The price faces strong resistance near $550 and the 100 hourly simple moving average.
There is a short-term contracting triangle developing with struggle near $528 on the hourly chart of ETH/USD.
The pair can test the $550 break if it clears the triangle resistance zone.
ETH Price Faces Obstacles
Yesterday, a sharp decline in bitcoin had been seen, along with Ethereum, Ripple, and other altcoins. ETH broke the $550 support level and settled below the 100 hourly SMA.
It gave opportunities for more downsides, and the price then spiked below $500. Ultimately, ether found support close to the $480 level. The bears made two attempts to clear the $480 support but failed. The price started a sound recovery wave above the $500 level.
There has been a break beyond the $510 resistance level. Ether even climbed above the 23.6% Fib retracement level of the current decline from the $623 swing high to the $478 low.
There is a significant hurdle formed neat the $550 level and the 100 hourly moving average for the best part. There is also a short-term tightening triangle developing with resistance near $528 on the hourly chart of ETH/USD.
If there is an upside break beyond the triangle resistance, the price can test the $550 barrier. It is also near the 50% Fib retracement level of the current decline from the $623 high to $478 low. The price must get past the $550 resistance and settle above the 100 hourly SMA to get back into a positive zone.
More Damages in ETH?
When ethereum fails to recover above the triangle resistance of $550, there will be a new decline. And initial support will be near the $510 level, and the triangle lowers the trend line.
A downside break below the triangle support can push the price below the $500 level. The primary asset is near the $480 level; below it is the risk of a drop towards the $450 level.
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