Ethereum price corrects below $1,600
ETH/USD might turn negative and retest prices near $1,300 if bears break below $1,500
Ethereum (ETH) has corrected 6% in the past 24 hours and is currently over 13% in the red as compared to the past week. This comes after sellers continued to exert downward pressure following rejection at $1,869.
The technical perspective for ETH/USD shows that the price of the second largest cryptocurrency is delicately poised above the major support zone at $1,560.
As of writing, ETH/USD is trading around $1,584.
Ethereum price outlook
Ethereum saw a fresh decline from $1,800 and broke below the critical support of the 100 SMA at $1,718. Bears continued to prevail below $1,600 and a key ascending trend line, with ETH touching lows of $1,520.
Bulls have tried to recover above $1,600 but to no avail. Bitcoin’s dip towards $52,000 despite the Tesla news has not helped. A broader sell-off in the market could thus contribute to Ethereum’s losses to the $1,500 level.
The daily MACD is increasing within the bearish zone, while the daily RSI trends with a negative divergence below the midpoint. The indicator currently ticks 41 to suggest bears have the upper hand.
This technical outlook for ETH suggests bears might yet push prices past intraday lows of $1,520, with the horizontal line at $1,420 the primary support zone. Any more losses could see Ethereum’s price dip to $1,300 and then to recent lows of $1,290.
The hourly MACD shows a decreasing momentum within the bearish zone, but the RSI below 40 suggests bears are still in command. If the downward pressure holds, ETH/USD might break below a bullish trend line formed on the hourly chart and continue to the aforementioned lows of $1,520 or lower.
On the contrary, bulls could rebound above the critical $1,600 level and retest overhead resistance near $1,700.
ETH/USD has a high formed near the 0.236 Fib level ($1,594) after bouncing off support at $1,550. Buyers are likely to target the 100 hourly simple moving average at $1,618, above which they could break to the 0.5 Fib level ($1,643) of the swing from $1,737 to $1,550.
Such a scenario will allow for new buy orders to ride on the upside momentum towards $1,700. In this case, ETH/USD could rally above $1,800 and target fresh highs above $2k.