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Ethereum Price Drops From $1,600, But ETH May Start New Rally

Ethereum Price Drops From $1,600, But ETH May Start New Rally

Ethereum struggled to clear the $1,600 resistance and corrected lower against the US Dollar. ETH may remain supported and may rise from the $1,500 support.

  • 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.

Technical indicators

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

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