Ethereum price started a downside correction from $1,720. ETH must clear the $1,670 and $1,700 resistance levels to continue higher.
- Ethereum started a downside correction below the $1,620 zone.
- The price is trading below $1,665 and the 100-hourly Simple Moving Average.
- There was a break below a bullish trend line with support at $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it stays below the $1,680 zone.
Ethereum Price Resumes Decline
Ethereum price failed to stay above the $1,700 zone and extended its decline, like Bitcoin. ETH price gained pace for a move below the $1,680 and $1,665 levels.
There was a break below a bullish trend line with support at $1,700 on the hourly chart of ETH/USD. The bears pushed the price below the 38.2% Fib retracement level of the upward move from the $1,505 swing low to the $1,719 high.
However, the bulls were active near the $1,610 level. Ethereum price is now trading below $1,680 and the 100-hourly Simple Moving Average. If the bulls remain in action above $1,610, the price could attempt another increase.
Immediate resistance is seen near the $1,665 level. The first key resistance is near the $1,680 level. The next major resistance is near the $1,710 level. A clear move above the $1,710 resistance might send the price toward the $1,750 resistance. An upside break above the $1,750 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $1,840 resistance zone or even $1,850 in the near term.
Downside Continuation In ETH?
If Ethereum fails to clear the $1,710 resistance, it could start a fresh decline. Initial support on the downside is near the $1,610 level. The first major support sits near the $1,585 zone or the 61.8% Fib retracement level of the upward move from the $1,505 swing low to the $1,719 high.
A clear move below the $1,585 support might push the price toward the $1,550 support. Any more losses might send the price toward the $1,520 region. The main support could be $1,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $1,550
Major Resistance Level – $1,710