Ethereum is correcting gains from the $1,700 resistance against the US Dollar. ETH could again unless there is a downside break below the $1,600 support zone.
• Ethereum spiked above the $1,700 resistance zone before it corrected lower.
• The price is now trading above $1,620 and the 100 hourly simple moving average.
• There is a key bullish trend line forming with support near $1,605 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another increase if it stays above the $1,600 support zone.
Ethereum Price Remains Supported
Ethereum price remained supported for more gains above the $1,650 level. ETH even cleared the $1,680 level and spiked above $1,700. It traded as high as $1,714 before there was a downside correction, similar to bitcoin.
There was a break below the $1,680 and $1,665 levels. The price declined below the 23.6% Fib retracement level of the upward move from the $1,558 swing low to $1,714 high. However, the bulls are active near the $1,640 level.
Ether price is now trading above $1,620 and the 100 hourly simple moving average. It is consolidating near the 50% Fib retracement level of the upward move from the $1,558 swing low to $1,714 high. There is also a key bullish trend line forming with support near $1,605 on the hourly chart of ETH/USD.
An immediate resistance is near the $1,660 level. The next major resistance is near the $1,700 level. An upside break above the $1,700 resistance zone could spark a fresh increase.
In the stated case, the price may perhaps rise towards the $1,780 resistance. Any more gains might send ether price towards the $1,800 resistance zone.
Downside Break in ETH?
If ethereum fails to clear the $1,660 resistance, it could continue to move down. An initial support on the downside is near the $1,620 level and the 100 hourly simple moving average.
The next major support is near the $1,600 zone or the trend line. If there is a break below $1,600, the price might drop towards the $1,565 support. Any more losses might call for a test of the $1,530 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,600
Major Resistance Level – $1,660