Ethereum Price Drops From $1,600, But ETH May Start New Rally
- Ethereum is correcting gains from the $1,600 and $1,580 resistance levels.
- The price is now trading below $1,550 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $1,580 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally if it stays above the $1,500 support zone.
Ethereum price remains supported for more gains
Ethereum price struggled to clear the $1,600 resistance zone. ETH hit a high near $1,610 and started another downside correction, similar to bitcoin from $21,500.
There was a clear move below the $1580 and $1550 support levels. There was a break below a key uptrend line with support near $1,580 on the hourly chart of ETH/USD. The bears even pushed the price below the $1,545 support.
Ether price is now trading below $1,550 and the 100 hourly simple moving average. It traded as low as $1,480 and is currently consolidating its losses. There was a slight increase above the 23.6% Fib retracement level of the recent decline from the $1,610 high to $1,480 low.
An immediate resistance is near the $1,540 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent swing decline from the $1,610 swing low to $1,480 low. The next major resistance is near the $1,560 level. An upside break above the $1,560 resistance zone could trigger a further increase.
Source: ETHUSD on TradingView.com
In the indicated case, the price could possibly rise towards the resistance at $1,600. Any further gains could push the price up towards $1,650 or even $1,700 in the short term.
Dips Limited in ETH?
If Ethereum fails to clear the $1,545 resistance, it could continue to decline. An initial support on the downside is near the $1,500 level.
The next major support is near the $1,480 level. If there is a move below $1,480, the price could test the support at $1,435. Any further losses might require a test of the $1,400 zone.
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 – $1,500
Major resistance level – $1,545