ETH started another decline and traded below the $1,630 support, like Bitcoin.
Ethereum price corrected lower from the $1,670 resistance against the US Dollar. ETH could take a big hit if it breaks the $1,600 support. Ethereum started a bearish wave from the $1,660 resistance. The price is trading below $1,640 and the 100-hourly simple moving average.
A key bearish trend line is forming with resistance near $1,640 on the hourly chart of ETH/USD (data via Kraken). The pair must hold above the $1,600 support zone to start another rise in the near term.
Ethereum Price Further Slides
Ethereum price failed to break above the $1,660 and $1,670 resistance levels. As a result, ETH started another decline and traded below the $1,630 support, like Bitcoin. The price also moved below the $1,620 support. However, the bulls are active near the $1,600 level.
A low is forming near $1,606 and the price is now consolidating losses. It is trading near the 23.6% Fibonacci retracement level of the downward move from the high of $1,659 to the low of $1,606. Ether is now trading below $1,640 and the 100-hourly simple moving average.
There is also a key bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $1,630 level and the 100-hourly simple moving average.
The next resistance is near the $1,640 level and the trend line. The trend line is also near the 61.8% Fibonacci retracement level of the downward move from the high of $1,659 to the low of $1,606.
The main resistance is now forming near $1,660. A close above the $1,660 resistance could send the price towards the $1,720 resistance. The next major barrier is near the $1,750 level. A close above the $1,750 level could see Ethereum rise further towards $1,820.
More Losses in ETH?
If Ethereum fails to overcome the $1,640 resistance, it could start another decline. Initial support on the downside is near the $1,600 level. A drop below $1,600 could accelerate losses.
The next key support is near $1,540, below which the price could even test the $1,500 level. The next key support is $1,440.
MACD Hourly Technical Indicators – The MACD for ETH/USD is losing momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 level. Main Support Level: $1,600 Main Resistance Level: $1,640.
Is Ethereum Valuation Undervalued?
In another vein, an analysis carried out by a joint company between Re7 Capital and Republic Crypto called RxR has indicated that the valuation of Ethereum is undervalued and pegs it at $275 billion.
The report used a modified model centered on Metcalfe, noting that existing models do not take scale dynamics into account.
“Ethereum Network Valuation tracks the updated ML Index better when the active user base of Ethereum scaling networks is factored into the model than when it is omitted,” said RxR analyst Lewis Harland.
The report added that the market has not yet priced in Ethereum adoption levels. “User growth on Ethereum as an application platform will outpace simple value transfer networks over time, implying higher relative valuations based on Metcalfe’s law,” Harland noted.
Ethereum moves at $1,640. The 70 and 200-period moving averages are above the price, RSI is down at 47 points and the MACD lines are up towards the zero level.
By Leonardo Pérez
