Ethereum started a downside correction from a new all-time high at $1,697 against the US Dollar. ETH price is holding gains above $1,600 and it could start a fresh increase.
- Ethereum started a downside correction below the $1,650 and $1,620 levels.
- The price is still trading well above $1,600 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $1,655 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to resume higher once it clears the $1,655 and $1,660 resistance levels in the near term.
Ethereum Price Remains Steady
After setting a new all-time high near $1,697, Ethereum started a short-term downside correction. ETH traded below the $1,650 and $1,620 support levels. There was also a spike below the $1,600 level, but the price recovered quickly.
Ether is now trading well above $1,600 and the 100 hourly simple moving average. The recent swing low was formed near $1,589 before the price climbed above $1,620.
There was a break above the 50% Fib retracement level of the recent decline from the $1,672 high to $1,589 low. It seems like there is a key contracting triangle forming with resistance near $1,655 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The triangle resistance is close to the 76.4% Fib retracement level of the recent decline from the $1,672 high to $1,589 low. If there is a close above the triangle resistance at $1,655 and $1,660, ether price might start a fresh increase.
In the stated case, it could even surpass the $1,700 level in the near term. The next major resistance for the bulls above $1,700 might be $1,735 (a key fib extension level).
Dips Supported in ETH?
If Ethereum fails to clear the $1,655 resistance level and the triangle upper trend line, it could correct further lower. On the downside, an initial support is near the triangle lower trend line at $1,585.
A downside break below the triangle support could push the price towards the $1,550 support zone. Any more losses is likely to lead the price towards the $1,500 support region in the coming sessions.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently just above the 50 level.
Major Support Level – $1,585
Major Resistance Level – $1,660
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