Ethereum Price Analysis: ETH Correction Reaches Crucial Juncture
- Ethereum price traded as high as $1,947 before starting a downside correction against the US Dollar.
- ETH price is currently trading near the $1,700 support and the 55 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $1,720 on the 4-hours chart (data feed from Coinbase).
- The pair could decline heavily if there is a clear break below $1,720 and $1,700.
Ethereum price is correcting gains from well above $1,900 against the US Dollar. ETH/USD must stay above $1,700 to avoid more losses in the near term.
Ethereum Price Analysis
After forming a base above $1,500, Ethereum started a strong increase against the US Dollar. ETH broke many important hurdles near $1,550 and $1,700.
The price even climbed above $1,800 and the 55 simple moving average (4-hours). However, the price failed to test the main $2,000 resistance. A high was formed near $1,947 before the price started a downside correction. There was a break below the $1,850 and $1,800 support levels.
The price is currently trading near the $1,700 support and the 55 simple moving average (4-hours). There is also a major bullish trend line forming with support near $1,720 on the 4-hours chart.
A low is formed near $1,709 and the price is struggling to recover. An initial resistance is near the $1,765 level. It is close to the 23.6% Fib retracement level of the downward move from the $1,947 swing high to $1,709 low. The price might also face sellers near $1,800.
The main resistance is now forming near the $1,830 level. It is close to the 50% Fib retracement level of the downward move from the $1,947 swing high to $1,709 low. A clear close above the $1,800 and $1,828 levels may possibly pump the price back towards the $1,900 level.
Conversely, the price might extend its decline below the trend line and $1,720. The next key support is near the $1,650 level. Any more losses could lead the price towards the $1,600 level.
Looking at the chart, Ethereum price is clearly trading near a crucial support at $1,700. Overall, ether price could decline heavily if there is a clear break below $1,720 and $1,700 in the near term.
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.
Key Support Levels – $1,700, followed by the $1,600 zone.
Key Resistance Levels – $1,800 and $1,830.