Ethereum’s price initiated a downward correction after reaching a peak of $1,866 against the US dollar. For a new upward move, ETH needs to maintain a level of support at $1,750.
Despite attempting to break above $1,850, Ethereum faced resistance and underwent a corrective phase. The current price is above $1,750 and remains supported by the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there was a notable breach beneath a crucial bullish trend line, with support approximately at $1,810, as per data from Kraken.
Should the cryptocurrency fail to hold above the $1,750 support, it could potentially experience a further decline.
The Ethereum price indicates a potential downward correction.
Ethereum made an attempt to surge above the $1,820 threshold, managing to surpass the $1,850 resistance briefly. However, these gains were somewhat restrained, resulting in the price peaking at $1,866 before commencing a downward correction, mirroring the trend in Bitcoin.
During this correction, Ethereum saw a dip below both the $1,810 and $1,800 levels, with a notable break beneath a significant bullish trend line that had support around $1,810, as indicated on the hourly chart of ETH/USD. The digital asset nearly approached the $1,750 support before experiencing a resurgence.
The lowest point reached was around $1,763, and the price is presently in a consolidation phase. It is currently trading near the 23.6% Fibonacci retracement level of the decline, spanning from the $1,866 high to the $1,763 low.
Ethereum is presently maintaining its position above the $1,750 level and is accompanied by the 100-hourly Simple Moving Average. In terms of the upside, the price is confronting resistance in the vicinity of the $1,815 mark. This level aligns closely with the 50% Fibonacci retracement level of the correction, which extends from the $1,866 swing high down to the $1,763 low.
The initial significant resistance is located in the vicinity of the $1,850 area. If the price manages to achieve a close above this $1,850 resistance level, it could pave the way for a substantial upward movement. In such a scenario, Ethereum might surge beyond $1,865 and aim for a test at $1,920. The subsequent pivotal resistance lies around $1,950, and if breached, it has the potential to accelerate the price even further. Under these circumstances, the price may ascend towards the $2,000 threshold.
Could Ethereum (ETH) Experience Further Declines?
If Ethereum is unable to surmount the $1,815 resistance, it may initiate another downward trend. The initial support in the event of a decline is situated around the $1,765 level.
Subsequently, the next crucial support level can be found at $1,750, which coincides with the 100-hourly Simple Moving Average. A breach beneath the $1,750 support has the potential to push the price even lower, potentially causing Ethereum to descend towards the $1,700 mark.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is displaying a waning bullish momentum.
Hourly RSI – The RSI for ETH/USD has now dipped below the 50 level.
Key Support Level – $1,750
Key Resistance Level – $1,815