Ethereum corrected lower below $1,650 against the US Dollar. ETH must stay above the $1,550 support zone to avoid a sharp bearish reversal.
Ethereum started a key downside correction and traded below the $1,650 level.
The price is now trading below $1,650 and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $1,550 support to start a fresh increase in the near term.
Ethereum Price Dips Over 6%
Ethereum failed to stay above the $1,750 and $1,720 levels. ETH reacted to the downside below the $1,700 level and the 100 hourly simple moving average.
The price declined over 5% and even spiked below the $1,600 level, similar to bitcoin. It even tested the $1,550 support and traded as low as $1,552. Ether is now trading below $1,650 and the 100 hourly simple moving average.
The bulls are now pushing the price above the 23.6% Fib retracement level of the downward move from the $1,789 swing high to $1,552 low. On the upside, the price is facing resistance near the $1,620 level.
The next 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 $1,552 low. A clear break above $1,670 might send the price towards the $1,700 level.
Source: ETHUSD on TradingView.com
There is also a connecting bearish trend line forming with resistance near $1,700 and the 100 hourly simple moving average on the hourly chart of ETH/USD. Any more gains may perhaps open the doors 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 could continue to move down. An initial support on the downside is near the $1,580 zone.
The next major support is near $1,550. A downside break below the $1,550 support might spark more losses. In the stated case, ether price might decline towards the $1,500 level. Any more losses could push the price to $1,440.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now rising towards the 50 level.
Major Support Level – $1,500
Major Resistance Level – $1,660