Ethereum continued its decline on Thursday, crashing below the pivotal $500 level to a one-month low.
ETH/USD is currently on a downward trend testing a major support level at $460.
A major resistance level has been established at $490.
ETH/USD Facing Tough Climb
Following a sharp decline in the cryptocurrency market this past weekend, Ethereum continued its decline on Thursday morning, crashing below the pivotal $500 price level and hitting a one-month low of $459. The digital currency is currently trading at close to $466 and trapped between the $460-$470 price range.
ETH/USD has now formed a bearish trend testing a major support level at $460. A resistance point has been established just below the $500 mark at $490. The candlestick patterns indicate that ETH/USD could drop even lower later in the day.
On the downside, a break below the support could see Ethereum price end up at near $440. On the upside, a reversal could send ETH/USD back toward $480 in the short term. However, it may take a major bullish run later this week to get Ethereum over the $500 hurdle.
The technicals indicate that a correction is on the horizon. The recent MACD crossover sends a bullish signal, and there’s an increasing buying pressure as shown by the RSI score and rising trading volume.
Looking at the Technical Indicators:
Hourly MACD — Bullish signal
Hourly RSI — Ethereum is in overbought territory
Major Resistance Level — $490
Major Support Level — $460
Featured Image: Depositphotos/© BiancoBlue
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.