Ethereum price spiked above $1,700 before correcting lower against the US Dollar. ETH is still well supported above the $1,600 zone and the 100 hourly SMA.
- Ethereum climbed above the $1,700 resistance before the bears took a stand.
- The price is still trading above $1,600 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another increase unless there is a clear move below the $1,600 support.
Ethereum Price Drops $100
Ethereum price attempted more gains above the $1,700 resistance zone. ETH spiked above the $1,700 level before the bears took a stand, similar to bitcoin.
A new weekly high was formed near $1,745 before there was a sharp decline. The price declined below the $1,700 and $1,680 levels. There was even a spike below the 50% Fib retracement level of the upward move from the $1,544 swing low to $1,745 high.
However, the bulls were active above the $1,620 support. Ether price is still trading above $1,600 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $1,640 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
On the upside, the price is facing resistance near the $1,680 level. The next major resistance is near the $1,700 zone. A proper close above the $1,700 resistance zone could start a steady increase. In the stated case, the price may perhaps rise towards the $1,780 resistance. The next major resistance is near the $1,840 level.
More Losses in ETH?
If ethereum fails to clear the $1,700 resistance, it could continue to move down. An initial support on the downside is near the $1,640 level and the trend line.
The next major support is near the $1,640 zone or the 100 hourly SMA or the 61.8% Fib retracement level of the upward move from the $1,544 swing low to $1,745 high. If there is a break below $1,600, the price might continue to drop and move towards the $1,565 support. Any more losses might call for a test of the $1,500 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,640
Major Resistance Level – $1,700
