Ethereum fights to stay above $600 while breakdown to $565 seems inevitable

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…

advertisement

  • 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.

Advertisement

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

ETH/USD price chart by Tradingview

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.

Advertisement

Ethereum intraday levels

Spot rate: $605

Relative change: -10

Percentage change: -1.7%

Trend: Bearish bias

Volatility: Expanding

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

John Isige

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Recent Posts

Institutional-grade Crypto Exchange AAX Reports Record Fiat-Crypto Purchases in 2021

Singapore, January 12, 2021 — Cryptocurrency exchange AAX has reported record-breaking volume in the early…

10 mins ago

Former Ripple CTO Dumps 28.6 Million XRP For The First Time Post SEC Lawsuit

Jed McCaleb, former CTO of Ripple dumped another 28.6million XRP for the first time since…

1 hour ago

100 Million USDT Moved From Tether [USDT] Treasury, Analyst Peter Brandt Casts Doubts Over Tether & BTC Pumps

100 Million Tether [USDT] were recently moved from Tether treasury to an unknown wallet and…

1 hour ago

Former IMF Chief Economist Calls Bitcoin (BTC) A Classic Bubble

Just as the Bitcoin (BTC) price scales new heights, a lot of world leaders and…

4 hours ago

On-Chain Metrics Suggests Ethereum [ETH] Price Poised to Breach ATH

ETH price currently trading at a new yearly high of $1,340 with over 12% gains…

4 hours ago

Ethereum price poised to skyrocket 41% to a new record high targeting $1,800

Ethereum has broken above the hypotenuse of an ascending triangle, adding credibility to the upswing.…

7 hours ago