Ethereum initiated an upward correction from the $ 1,720 zone against the US Dollar. The ETH price could correct further, but the advantages could be capped at close to $ 1,850.
Ethereum formed a base above the $ 1,720 support zone before beginning an upward correction. The price is still trading well below the $ 1,850 resistance and the 100 hourly simple moving average. There was a break above a key downtrend line with resistance near $ 1,790 on the hourly chart of ETH / USD (data feed via Kraken). The pair is likely to rally further towards the $ 1,850 resistance zone and the 100 hourly SMA.
Ethereum price correcting losses
Ethereum remained in a bearish zone and extended its slide below $ 1,800, similar to bitcoin. ETH price broke the $ 1,780 support and settled well below the 100 hourly simple moving average.
The price traded as low as $ 1,718 and appears to be forming a base above $ 1,720. Ether is now correcting for gains and is trading above the $ 1,750 level. There was a break above the 50% Fib retracement level of the key decline from the $ 1,832 high to $ 1,718 low.
There was also a break above a key downtrend line with resistance near $ 1,790 on the ETH / USD hourly chart. The pair is now trading above the 61.8% Fib retracement level of the key drop from the $ 1,832 high to $ 1,718 low.
Source: ETHUSD on TradingView.com
The price is now facing resistance near the $ 1,810 level. Major resistance is now forming near the $ 1,850 level and the 100 hourly SMA. To move into a positive zone, the price must climb above the $ 1,830 and $ 1,850 resistance levels.
New decline in ETH?
If Ethereum does not rally above $ 1,820 and $ 1,850, it could continue to decline. An initial support on the downside is near the $ 1,775 level.
The first major support is near the $ 1,750 level. The main support is now forming near the $ 1,720 level. Any further losses could set the pace for a decline towards the $ 1,650 support zone in the near term. The next major support is near the $ 1,600 level.
MACD per hour : The MACD for ETH / USD is now gaining momentum in the bullish zone.
RSI per hour : The RSI for ETH / USD is now above the 50 level.
Major Support Level – $ 1,750
Major Resistance Level – $ 1,850