Ethereum Price Analysis: ETH breakdown to $1,500 seems imminent as on-chain metrics flip bearish

• Ethereum has lost several support levels since the rejection from the all-time high of $1,940.
• Support at the 200 SMA is expected to prevent extended losses toward $1,500.
• Recovery above $1,700 may call out many buyers to rejoin the market in anticipation of gains eying $2,000.

Ethereum has been among the cryptocurrencies that are correcting from their all-time highs. The flagship smart contract token had closed in on $2,000 but traded a record high at $2,040. Following the trend reversal, Ethereum dropped sharply to $1,500 before making a shallow recovery.

However, the upside has been limited by the resistance at the 100 Simple Moving Average (SMA) on the 4-hour chart. Ether is dancing at slightly below $1,700 while bulls fight to sustain the uptrend.

Short-term technical analysis suggests that Ethereum’s least resistance path is downwards. For instance, the Moving Average Convergence Divergence (MACD) has dipped under the midline. In addition, the MACD line (blue) already crossed below the signal line, which is a critical bearish signal. Investors are likely to continue selling as long as the MACD line increases the divergence beneath the signal line.

ETH/USD 4-hour chart

ETH/USD price chart by Tradingview

On the downside, support is expected at the 200 SMA, currently holding the ground at $1,600. However, if push comes to shove, Ether will drop further towards $1,500, where immense buyer congestion is expected.

It is worth keeping in mind that the massive correction may fail to occur if Ethereum recovers and $1,700 and sustain gains above this level. On the upside, eyes will shift to the 50 SMA, currently at $1,863. Despite the freefall from the all-time high, Ethereum bulls still desire to hit levels above $2,000, and they will work around the clock to achieve this goal.

Ethereum intraday levels

Spot rate: $1,688

Relative change: -90

Percentage change: -5%

Trend: Bearish

Volatility: Growing

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