- Ethereum is holding firmly to the ascending parallel channel’s lower boundary support.
- The breakdown to the 50 SMA will be validated if Ethereum closed the day under $600.
Ethereum recently reclaimed the position above $600 but has failed to sustain the uptrend to the next resistance at $520. At the time of writing, the smart contract giant is dancing at $605 amid firm calls for declines under $600. On the downside, losses below the crucial support might extend to $565.
Ethereum is on the verge of a breakdown
Ether is fighting tooth and nail to hold the support at the ascending channel’s lower boundary. The bearish outlook was validated after the price closed the day under the middle layer resistance. Moreover, the bearish narrative will be confirmed if ETH made a daily close under the crucial level at $600.
For now, the least resistance path is downwards, especially with the Relative Strength Index gradually moving toward the midline. The expected losses might stretch to the 50 Simple Moving Average at $565 on the 4-hour chart. However, the subtle buyer congestion at $565 could absorb some of the selling pressure.
ETH/USD 4-hour chart
Therefore, it should the bulls’ priority to keep the price above $600 and defend the support at the ascending channel’s lower boundary. This will play a very vital role in ensuring the bearish outlook is sabotaged.
Ethereum will embark on the uptrend to the recent yearly high at $636 if the support at $600 is defended firmly. Trading above the hurdle at $620 is likely to call for more buy orders. If enough buying pressure is created, ETH/USD might even overshoot the yearly high for new highs towards $700.
Ethereum intraday levels
Spot rate: $605
Relative change: -10
Percentage change: -1.7%
Trend: Bearish bias