Ethereum Price Just Saw Key Technical Correction But Upsides Remain Capped
Ethereum price extended its decline below the $1,550 support against the US Dollar. ETH is recovering losses, but upsides might be capped near $1,620.
- Ethereum gained bearish momentum below $1,580 and $1,550.
- The price is trading below $1,600 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance near $1,605 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher but the bears might remain active near $1,600 and $1,620.
Ethereum Price Breaks Down
Ethereum’s price failed to settle above the $1,620 pivot level. ETH started a fresh decline and settled below the $1,600 level, like Bitcoin.
There was a drop below the $1,580 and $1,550 levels. It retested the $1,530 zone. A low has formed near $1,530 and the price is now correcting losses. There was a minor increase above the $1,550 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low.
Ether is now trading below $1,600 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance near $1,605 on the hourly chart of ETH/USD.
On the upside, the price might face resistance near the $1,600 level or the 50% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low. The next resistance is near the $1,605 level or the trend line.
Source: ETHUSD on TradingView.com
The first major resistance is near $1,620, above which the price could rise toward the $1,650 level. The next major hurdle is near the $1,670 level. A close above the $1,670 level might send Ethereum further higher toward $1,750.
Another Drop in ETH?
If Ethereum fails to clear the $1,600 resistance, it could start another decline. Initial support on the downside is near the $1,550 level.
The first key support is close to $1,530. The next key support is $1,500. A downside break below $1,500 might spark more bearish moves. In the stated case, there could be a drop toward the $1,440 level in the near term.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,530
Major Resistance Level – $1,620
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