Ethereum corrected lower below $1,650 against the US dollar. ETH needs to stay above the $1,550 support zone to avoid a sharp bearish reversal.
- Ethereum has started a key downward correction, trading below the $1,650 level.
- The price is now trading below $1,650 and the 100 hourly simple moving average.
- There is a converging bearish trendline with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to stay above the $1,550 support to start raising again in the near term.
Ethereum price down more than 6%
Ethereum failed to hold above the $1,750 and $1,720 levels. ETH responded by falling below the $1,700 level and the 100 hourly simple moving average.
The price fell by more than 5% and even jumped below the $1,600 level, similar to bitcoin. It even tested the $1,550 support and traded as high as $1,552. Ether is now trading below $1,650 and the 100 hourly simple moving average.
Bulls are now pushing the price above the 23.6% Fib retracement level on the downside move from the $1,789 high to the $1,552 low. On the upside, the price is facing resistance near the $1,620 level.
Another major resistance is near the $1,660 and $1,670 levels. It is near the 50% Fib retracement level of the downward move from the $1,789 swing high to the $1,552 low. A clear break above $1,670 can send the price towards the $1,700 level.
Source: ETHUSD on TradingView.com
There is also a converging bearish trendline with resistance near $1,700 and 100 hour simple moving average on the ETH/USD hourly chart. Any further gains may open the door for a move towards the $1,780 resistance in the near term.
More losses in ETH?
If Ethereum fails to rise above the $1,660 resistance, it may continue to move lower. Initial downside support is near the $1,580 zone.
The next major support is near $1,550. A downside break below the $1,550 support could trigger further losses. In this case, the price of Ether may drop to the level of 1500 USD. Any further losses could push the price to $1,440.
Hourly MACD – The MACD for ETH/USD is now losing strength in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now rising towards the 50 level.
Main support level – $1,500
Major resistance level – $1,660