The Ethereum price was corrected below $1,650 to the US Dollar. To avoid a bearish reversal, ETH should remain above the $1550 support zone.
- Ethereum began a major downside correction, trading below $1650.
- The current price trades below $1,650 as well as the simple 100-hour moving average.
- On the hourly chart for ETH/USD, there is a connected bearish trend line that forms with resistance close to $1,700. (Data feed via Kraken).
- For a new increase to be possible, both the support and the price must remain above $1550.
Ethereum price drops more than 6%
Ethereum was unable to maintain above $1,750 or $1,720 levels. ETH reacted below the $1700 level and 100 hourly simple moving mean.
This was similar to bitcoin, with the price falling over 5%. It even spiked above $1,600. Even though it reached the $1550 support, it traded at $1,552. Ether currently trades below $1,650.
Bulls have pushed the price higher than the 23.6% Fib Retracement level for the downmove from $1,789 swing high, to $1,552 lower. Surprisingly, resistance is near the $1620 level.
Near the $1,660-$1,670 levels is the next significant resistance. The 50% Fib Retracement level is the lowest point of the downmove from $1,789 high to $1.552 low. If the price breaks $1,670, it could push the price to the $1,700 mark.
Source: TradingView.com, ETHUSD
A connecting bearish trendline is also in place with resistance at $1,700 as well as the 100-hourly simple moving average of the hourly chart for ETH/USD. In the short term, any further gains could open up the possibility of a push towards $1780 resistance.
What Are the Losses of ETH More?
The $1,660 resistance could be broken and ethereum may continue its downward slide. Initial support is located near $1,580.
Nearly $1,550 is the next support. A break below the $1550 level could cause more losses. If this happens, the ether price could fall towards the $1500 mark. The price could rise to $1.440 with any additional losses.
Hourly MACD – MACD of ETH/USD has lost momentum and is currently in the bearish zone.
Hourly RSI – The RSI of ETH/USD has risen to the 50-level.
Major Support Level – $1,500
Major Resistance Level – $1,660