TA: Ethereum Corrects Sharply, Why ETH Could Struggle To Reclaim $1,800
Ethereum started a sharp decline after it failed to surpass the $1,850 resistance against the US Dollar. ETH price tested $1,660 and it is currently facing hurdles near $1,760.
- Ethereum started a strong downside correction from the $1,850 and $1,860 resistance levels.
- The price is now trading well below $1,800 and the 100 hourly simple moving average.
- There was a break below a major contracting triangle with support near $1,790 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover, but it might face a strong resistance near $1,760 and $1,780.
Ethereum Price Dips 8%
Ethereum failed to extend gains above the $1,850 and $1,860 resistance levels. ETH started a fresh decline (similar to bitcoin) from the $1,834 swing high and it declined more than $150.
There was a break below the $1,800 support level and the 100 hourly simple moving average. There was also a break below a major contracting triangle with support near $1,790 on the hourly chart of ETH/USD.
Ether price tumbled below the $1,750 support and it even spiked below the $1,700 level. The bulls appeared near the $1,650 and $1,660 levels and protected more downsides. A low is formed near $1,664 and the price is currently recovering.
Source: ETHUSD on TradingView.com
It is back above the $1,680 and $1,700 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $1,834 high to $1,664 low.
On the upside, the first key resistance is near the $1,750 level. It is close to the 50% Fib retracement level of the recent decline from the $1,834 high to $1,664 low. The next major resistance is near the $1,760 level (a multi-touch zone).
The main resistance is now forming near the $1,790 and $1,800 levels (the recent breakdown zone). The 100 hourly simple moving average is also positioned near the $1,800 level.
More Downsides in ETH?
If Ethereum fails to clear the $1,750 and $1,760 resistance levels, it could continue to move down. On the downside, the first major support is near the $1,700 level.
The main support is near the $1,660 level. If there is a close below the $1,700 level and a follow up move below $1,660, the price could dive towards the $1,600 support level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is well below the 40 level.
Major Support Level – $1,700
Major Resistance Level – $1,760
OhNoCrypto
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Aayush Jindal, @KhareemSudlow