Ethereum corrected lower to below $1,650 against the US Dollar. ETH must remain above the $1,550 support area to avoid a sharp bearish reversal.
- Ethereum started a major 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 solid bearish trend line forming with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must remain above the $1550 support level to start a fresh increase in the near term.
Ethereum price drops over 6%
Ethereum failed to stay above the $1750 and $1,720 levels. ETH responded to the downside below the $1700 level and the 100 hourly simple moving average.
The price fell more than 5% and even rose below the $1600 level, similar to Bitcoin. It even tested the $1,550 support and traded as low as $1,552. Ether is now trading at less than $1,650 and the 100 hourly simple moving average.
The bulls are now pushing the price above the 23.6% Fibonacci retracement level of the downside move from $1,789 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 close to the 50% Fib retracement level of the downside move from the $1,789 high swing high to $1,552 low. A clear break above $1,670 could push the price towards the $1,700 level.
Source: ETHUSD on TradingView.com
There is also a connecting bearish trend line forming with resistance near $1700 and Simple moving average per 100 hours On the hourly chart of ETH/USD. Any further gains could 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 resistance level at $1,660, it may continue to decline. There is initial support on the downside near the $1.580 region.
The next major support is near $1,550. A break-down below the $1,550 support level could lead to further losses. In the aforementioned case, the price of Ether might drop towards the $1500 level. Any further losses could push the price to $1440.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now rising towards the 50 level.
Main Support Level – $1500
Key Resistance Level – $1,660