Ethereum Price Dips Further But 100 SMA Is The Key To Fresh Increase

Ethereum Price Dips Further But 100 SMA Is The Key To Fresh Increase

Ethereum price is correcting gains from the $1,780 zone against the US Dollar. ETH must stay above the 100 hourly SMA to start a fresh increase.

  • Ethereum started a downside correction from the $1,780 resistance zone.
  • The price is trading above $1,600 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $1,695 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could take a major hit if there is a downside break below the $1,600 support.

Ethereum Price Corrects Gains

Ethereum price started a downside correction after it failed to clear the $1,800 resistance zone. ETH traded below the $1,700 level to enter a short-term bearish zone, similar to bitcoin.

There was a steady decline below the $1,680 and $1,650 levels. Besides, there was a break below a key bullish trend line with support near $1,695 on the hourly chart of ETH/USD. The pair settled below the 50% Fib retracement level of the upward move from the $1,570 swing low to $1,784 high.

Ether price is still trading above $1,600 and the 100 hourly simple moving average. It is also above the 76.4% Fib retracement level of the upward move from the $1,570 swing low to $1,784 high.

On the upside, the price is facing resistance near the $1,650 zone. The first major resistance is near the $1,665 zone. The next major resistance is near the $1,700 level. A close above the $1,700 resistance zone might start another major increase.

Ethereum Price

Source: ETHUSD on TradingView.com

In this case, the price may perhaps rise towards the $1,800 resistance level. Any more gains might send the price towards $1,880.

Downside Break in ETH?

If ethereum fails to clear the $1,700 resistance, it could start another decline. An initial support on the downside is near the $1,630 level and the 100 hourly SMA.

The next major support is near the $1,600 zone. If there is a break below $1,600, the price might drop towards $1,550. Any more losses might call for a test of the $1,485 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,700

editorial staff