Ethereum started a downside correction from $1,600 against the US Dollar. ETH could start a fresh increase if it stays above the $1,450 support.
Ethereum is correcting gains from the $1,580 and $1,600 resistance levels.
The price is now trading above $1,450 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,540 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $1,450 support zone.
Ethereum Price Remains Supported
Ethereum started a decent increase above the $1,450 and $1,500 resistance levels. ETH even cleared the $1,550 level and settled above the 100 hourly simple moving average.
The price traded close to the $1,600 resistance zone. A high was formed near $1,593 before there was a downside correction. There was a drop below the $1,550 level. Ether price even declined below the 23.6% Fib retracement level of the upward wave from the $1,340 swing low to $1,593 high.
It is now trading above $1,450 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,540 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $1,540 level and the trend line zone. The first major resistance is near the $1,550 and $1,560 levels, above which the price could gain bullish momentum. The main barrier is now near the $1,600 zone.
Source: ETHUSD on TradingView.com
A clear upside break above the $1,600 resistance zone could set the pace for a fresh rally. In the stated case, the price might rise towards the $1,720 level.
Dips Supported in ETH?
If ethereum fails to climb above the $1,550 resistance, it could continue to move down. An initial support on the downside is near the $1,465 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the upward wave from the $1,340 swing low to $1,593 high is also near $1,450. A downside break below the $1,450 zone might increase selling pressure and the price might drop to $1,400 in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,450
Major Resistance Level – $1,550