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HomeMarketsPrice AnalysisEthereum Price Just Saw Key Technical Correction But Upsides Remain Capped

Ethereum Price Just Saw Key Technical Correction But Upsides Remain Capped



Aayush Jindal

Ethereum price extended its decline below the $1,550 support against the US Dollar. ETH is recovering losses, but upsides might be capped near $1,620.

  • Ethereum gained bearish momentum below $1,580 and $1,550.
  • The price is trading below $1,600 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance near $1,605 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct higher but the bears might remain active near $1,600 and $1,620.

Ethereum Price Breaks Down

Ethereum’s price failed to settle above the $1,620 pivot level. ETH started a fresh decline and settled below the $1,600 level, like Bitcoin.

There was a drop below the $1,580 and $1,550 levels. It retested the $1,530 zone. A low has formed near $1,530 and the price is now correcting losses. There was a minor increase above the $1,550 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low.

Ether is now trading below $1,600 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance near $1,605 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,600 level or the 50% Fib retracement level of the downward move from the $1,670 swing high to the $1,530 low. The next resistance is near the $1,605 level or the trend line.

Source: ETHUSD on TradingView.com

The first major resistance is near $1,620, above which the price could rise toward the $1,650 level. The next major hurdle is near the $1,670 level. A close above the $1,670 level might send Ethereum further higher toward $1,750.

Another Drop in ETH?

If Ethereum fails to clear the $1,600 resistance, it could start another decline. Initial support on the downside is near the $1,550 level.

The first key support is close to $1,530. The next key support is $1,500. A downside break below $1,500 might spark more bearish moves. In the stated case, there could be a drop toward the $1,440 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly losing momentum in the bearish zone.

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

Major Support Level – $1,530

Major Resistance Level – $1,620




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