ETH/USD dropped to lows of $1,441 although bulls could rebound and settle in the $1,500-$1,600 range
Ethereum‘s price has dropped below $1,500 again, extending its 24-hour losses to lows of $1,441 as bears appear intent on further damage. At the time of writing, ETH/USD is trading at $1,455, about 7.6% in the red.
Ethereum declines amid BTC sell-off
The decline in ETH price follows another dip in Bitcoin (BTC). The top cryptocurrency looked to have rebounded above the psychological $50,000 level and was aiming to settle above $53,000.
However, bears appear to be relishing a battle and have so far come out on top, with BTC/USD plunging 7% in the past 24 hours to retest support near $46,800.
Other than Ethereum, top altcoins by market cap that have seen increased losses are Cardano (ADA), which is down 8%, Binance Coin (BNB), which is 10% down, Polkadot (DOT) down 12%, and Litecoin (LTC) in the red by about 9%. Even Ripple’s XRP that had rebounded above $0.46 is down by 3%.
As well as crypto, Gold and the equities market have seen downward pressure amid rising 10-year US rates. If the trend continues short term, we could see Bitcoin and the rest of the crypto market record further losses.
Ethereum price outlook
ETH/USD started a fresh decline after an attempted rebound failed at $1,600. A break below the major support line (blued, dotted) accelerated the dip towards $1,500 after bears crossed below the hourly SMA 100 (hourly chart) at $1,542.
A sharp decline ended with sellers revisiting the $1,441 line, which is just below a major horizontal support level at $1,450. Bulls managed to retest the SMA 100 zone, but mounting sell-off pressure saw a swift rejection send prices lower.
As the hourly chart shows, there is a short-term bearish trend line forming with highs currently capped at $1,478 (0.236 Fibonacci retracement level). If the price continues to track the trend line, the downward path could see bears target a horizontal support level near $1,400. Further support levels lie at $1,350 and $1,300.
On the upside, bulls face immediate resistance at the mentioned 0.236 Fib level. Above that, buyers must navigate seller congestion at the 0.5 Fib level ($1,520), 0.618 Fib level ($1,539) and the SMA 100 ($1,542).
If the recovery strengthens above $1,550, the next target would be $1,600. Another leg up could bring price targets at the 1.272 Fib level ($1,643) and 1.618 Fib level ($1,698) into focus.