Home CryptocurrencyAnalysis Ethereum price drops from $1,600, but ETH could start a new rally

Ethereum price drops from $1,600, but ETH could start a new rally

by SuperiorInvest

Ethereum tried to clear the $1,600 resistance and corrected lower against the US dollar. ETH could remain supported and could rise from the $1500 support.

  • Ethereum corrects gains from the $1,600 and $1,580 resistance levels.
  • The price is now trading below $1,550 and the 100 hourly simple moving average.
  • On the hourly chart of ETH/USD (data feed via Kraken), there was a break below a key bullish trendline with support near $1,580.
  • The pair could rise again if it remains above the $1,500 support zone.

Ethereum price remains supported for further gains

Ethereum price tried to clear the $1,600 resistance zone. ETH made a high near $1,610 and started a new downward correction, similar to bitcoin from $21,500.

There was a clear move below the $1,580 and $1,550 support levels. On the hourly chart, ETH/USD has broken below a key bullish trendline with support near $1,580. The bears even pushed the price below the $1,545 support.

The price of Ether is now trading below $1,550 and 100 hour simple moving average. It traded as high as $1,480 and is currently consolidating losses. There was a slight rally above the 23.6% Fib retracement level of the recent decline from the $1,610 swing high to the $1,480 low.

Immediate resistance is near the $1,540 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $1,610 swing high to the $1,480 low. Another major resistance is near the $1,560 level. A break above the $1,560 resistance zone could trigger a fresh rally.

Source: ETHUSD on TradingView.com

In the said case, the price can probably rise towards the $1,600 resistance. Any further gains could send the price to $1,650 or even $1,700 in the near term.

Dips Limited in ETH?

If Ethereum fails to clear the $1,545 resistance, it may continue to move lower. Initial downside support is near the $1,500 level.

Another major support is near the $1,480 level. If there is a move below $1,480, the price may test the $1,435 support. Any further losses could require a test of the $1,400 zone.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now gaining strength in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Main support level – $1,500

Major resistance level – $1,545

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