Ethereum price corrected gains from the $1,750 zone against the US dollar. ETH holds the key support at $1,620 and could start a new rally.
- Ethereum corrects gains from highs of $1,755.
- The price is trading below $1,700 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trendline with support near $1,690 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise unless there is a close below the $1,620 support.
Ethereum price corrects gains
Ethereum price extended its rise above the USD 1,720 level. ETH even spiked above the $1,750 resistance zone before the bears appeared, just like Bitcoin.
A high was formed around $1,755 before a downward correction occurred. There was a move below the $1,700 support level and the 100-hourly Simple Moving Average. The price fell below the 50% Fib retracement level of the upward move from the $1,583 swing low to the $1,755 high.
Additionally, there was a break below a connecting bullish trendline with support near $1,690 on the hourly chart of ETH/USD. Ethereum is now trading below $1,700 and the 100-hour Simple Moving Average.
However, the price is still above the 61.8% Fib retracement level of the upward move from the $1,583 swing low to the $1,755 high. On the upside, the price could encounter resistance near the $1,670 level and the 100-hourly Simple Moving Average.
Source: ETHUSD on TradingView.com
The next major resistance is $1,700. A clear move above the USD 1,700 resistance zone could set the pace for another surge. In the mentioned case, the price could reach the resistance at USD 1,750. The next major resistance could be $1,820. Any further gains could open the doors for a move towards $1,880.
Lose more in ETH?
If Ethereum fails to clear the USD 1,700 resistance, it could continue to decline. The initial downside support is near the $1,650 level. The next major support is at USD 1,620.
A downward break below the USD 1,620 support could trigger another strong bearish wave. In the mentioned case, there could be a decline towards the $1,580 level. Any further losses could require a $1,550 test.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $1,620
Major resistance level – $1,700
