Ethereum began a downward correction against the US dollar at $1,665. If it holds above $1,550 support, ETH might see a renewed increase.
- Ethereum reverses gains at the $1.650 and $1.665 resistance levels.
- Today, the price traded above $1550. The 100-hourly simple moving average is also up.
- On the hourly chart for ETH/USD, there is resistance close to $1,600. (Data feed via Kraken).
- If the pair remains above $1,550, it could begin a new increase.
Ethereum price remains supported
Ethereum traded in a positive zone, above and beyond the $1,450 resistance level. ETH gained momentum and traded in excess of the $1550 resistance zone with a closing close that was above the 100 hourly simple moving mean.
Price reached a multi-week high of $1,664 after clearing the $1,600 resistance. Recently, there was a downturn below the $1620 and $1600 levels. Even the 23.6% Fib Retracement Level of the upward movement from $1,485 swing lows to $1,664 highs, Ether’s price fell below that level.
The 100-hourly simple moving average and $1,550 are now the highest levels of trading. On the hourly chart for ETH/USD, there is a significant declining channel with resistance at $1,600.
The channel trend line zone and $1,600 are the immediate support levels for the upside. Near the $1650 and $1665 levels is the initial major resistance. Above which, the price may gain bullish momentum. The price may even reach the $1,700 mark in the above scenario.
Source: TradingView.com, ETHUSD
The pace could be set for another increase if there is a clear upward break of the $1,700 resistance level. The price could rise to $1,720 in this scenario.
Dips supported in ETH
It could fall further if it fails to rise above $1,600 resistance. The $1,565 and 100 hourly simple moving indices provide initial support.
Near $1,565, the 50% Fib level for the upward movement from $1,485 swing high to $1,664 low is also close. In the short term, a downside breakout below the $1550 zone could send the price to the $1500 support zone.
Technical indicators
Minutely MACD – In the bearish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The current RSI level for USD/ETH is below 50.
Major Support Level – $1,550
Major Resistance Level – $1,600
