TA: Ethereum Dips From Highs, Why ETH Could Correct To $1,375
Ethereum started a downside correction from $1,630 against the US Dollar. ETH could extend losses if there is a clear move below the $1,480 support.
- Ethereum started a downside correction from the $1,630 resistance zone.
- The price is now trading below $1,500 and near the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its downside correction if it breaks the $1,480 support.
Ethereum Price Starts Correction
Ethereum attempted another increase above the $1,600 resistance zone. However, ETH failed to gain pace above the $1,600 level. As a result, there was a downside correction below the $1,550 level.
Ether price corrected lower below the $1,520 support. There was a break below the 23.6% Fib retracement level of the key increase from the $1,325 swing low to $1,632 high. The price is now trading below $1,500 and near the 100 hourly simple moving average.
It is now approaching the key $1,480 support zone. There is also a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $1,520 level. The first major resistance is near the $1,560 zone. The main breakout zone is now forming near the $1,600 zone. A clear move above the $1,600 level could start another major increase.
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Source: ETHUSD on TradingView.com
The next key barrier is near the $1,630 level, above which the price might gain strength and rise towards the $1,700 resistance zone.
More Losses in ETH?
If ethereum fails to rise above the $1,560 resistance, it could continue to move down. An initial support on the downside is near the $1,480 zone and the trend line.
The trend line is near the 50% Fib retracement level of the key increase from the $1,325 swing low to $1,632 high. A clear move below the trend line support might push the price towards the $1,375 support zone. Any more losses might even push ether price below the $1,280 support.
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 – $1,480
Major Resistance Level – $1,560
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