Ethereum struggles to stay above $ 600 as the breakdown to $ 565 seems inevitable

• Ethereum firmly holds support of the lower boundary of the parallel ascending channel.
• The split of the 50 SMA will be validated if Ethereum closed the day below $ 600.

Ethereum recently claimed the position above $ 600, but failed to sustain the uptrend until the next resistance at $ 520. At the time of writing, the smart contract giant is dancing at $ 605 amid calls for lower than $ 600. On the downside, losses below the crucial support could extend to $ 565.

Ethereum is on the verge of a collapse

Ether is fighting tooth and nail to maintain support at the lower limit of the ascending channel. The bearish outlook was validated after the price closed the day below the resistance of the middle layer. Furthermore, the bearish narrative will be confirmed if ETH closes below the crucial $ 600 level daily.

For now, the minor resistance path is downward, especially with the relative strength index gradually moving towards the midline. Expected losses could extend 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

Therefore, it should take the bulls’ priority to hold the price above $ 600 and defend the support at the lower bound of the uptrend channel. This will play a very vital role in ensuring that the bearish outlook is sabotaged.

Ethereum will enter the uptrend to the recent annual high of $ 636 if the support at $ 600 is firmly defended. Trading above the $ 620 hurdle will likely require more buy orders. If sufficient buying pressure is created, ETH / USD could even break the annual high for new highs towards $ 700.

Ethereum intraday levels

Spot rate: $ 605

Relative variation: -10

Percentage change: -1.7%

Trend: bearish bias

Volatility: expanding