Ethereum price started a downward correction from USD 1,720. ETH needs to overcome the USD 1,670 and USD 1,700 resistance levels to continue rising.
- Ethereum started a downward correction below the $1,620 zone.
- The price is trading below $1,665 and the 100-hourly Simple Moving Average.
- There was a break below a bullish trendline with support at $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to decline if it remains below the $1,680 zone.
Ethereum price drops again
Ethereum’s price failed to stay above the $1,700 zone and continued its decline, just like Bitcoin. ETH price rose at a pace and fell below the USD 1,680 and USD 1,665 levels.
There was a break below a bullish trendline with support at $1,700 on the hourly chart of ETH/USD. The bears pushed the price below the 38.2% Fib retracement level of the upward move from the $1,505 swing low to the $1,719 high.
However, the bulls were active around the $1,610 level. Ethereum price is now trading below $1,680 and the 100-hourly Simple Moving Average. If the bulls continue to act above $1,610, the price could rise again.
Immediate resistance is seen around the $1,665 level. The first major resistance is near the $1,680 level. The next major resistance is around the $1,710 level. A clear move above the USD 1,710 resistance could send the price towards the USD 1,750 resistance. An upside break above the $1,750 region could lead to more gains in the coming days. In the mentioned case, Ether could rise towards the resistance zone of $1,840 or even $1,850 in the short term.
Disadvantage of continuation in ETH?
If Ethereum fails to clear the USD 1,710 resistance, it could trigger another decline. The initial downside support is near the $1,610 level. The first major support is near the $1,585 zone or the 61.8% Fib retracement level of the upward move from the $1,505 swing low to the $1,719 high.
A clear move below the USD 1,585 support could push the price towards the USD 1,550 support. Any further losses could send the price towards $1,520. The main support could be $1,500.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 zone.
Major support level – $1,550
Major resistance level – $1,710