Ethereum Starts Corrective Decrease, Why ETH Remains Attractive Near $1,500
Ethereum traded to a new all-time high near $1,750 before correcting lower against the US Dollar. ETH price is likely to find a strong support near $1,500.
- ETH price traded to a new all-time high at $1,750 before it corrected lower against the US Dollar.
- The price is trading below $1,650, but it is well above the 100 simple moving average (4-hours).
- There was a break below a major contracting triangle with support near $1,660 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could revisit the $1,500 support level, where the bulls are likely to remain active.
Ethereum’s Ether Correcting Gains
This past week, bitcoin and ethereum saw a steady increase above $1,500 and $36,000 respectively against the US Dollar. ETH traded to a new all-time high near $1,750 before it faced a strong selling interest.
The price started a downside correction and traded below the $1,700 level. The price traded below the 23.6% Fib retracement level of the upward move from the $1,275 swing low to $1,750 high. There was also a break below a major contracting triangle with support near $1,660 on the 4-hours chart of ETH/USD.
Source: ETHUSD on TradingView.com
The price is trading below $1,650, but it is well above the 100 simple moving average (4-hours). The next major support is near the $1,500 level. The 50% Fib retracement level of the upward move from the $1,275 swing low to $1,750 high is also near the $1,512 level.
Any more losses could open the doors for a steady decline towards the $1,440 support level. The 100 simple moving average (4-hours) is also near $1,440 to act as a strong support.
Fresh Increase in Ether (ETH)?
If Ethereum remains stable above $1,500, it could start a fresh increase. An initial resistance on the upside is near the $1,700 level (the recent breakdown zone).
The next major resistance is near the $1,750 level. A clear break above the $1,700 and $1,750 resistance levels could open the doors for a strong increase. In the stated case, the price could climb above the $1,800 and $1,850 levels in the near term.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is just above the 50 level.
Major Support Level – $1,500
Major Resistance Level – $1,700
OhNoCrypto
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Aayush Jindal, @KhareemSudlow