Can the Bulls be saved?

Ethereum has corrected below $1,650 against the US dollar. ETH must stay above the $1,550 support zone to avoid a sharp bearish reversal.

• Ethereum started a major correction and traded below $1,650.
• The price is currently trading below $1,650 and the 100 hour simple moving average.
• The ETH/USD hourly chart (data feed via Kraken) has a bearish trend line forming resistance near $1,700.
• The pair has to stay above the support at $1,550 to initiate a new rally in the near future.

Ethereum Price Drops Over 6%

Ethereum failed to sustain the $1,750 and $1,720 levels. ETH reacted to a drop below $1,700 and the 100 hour simple moving average.

The price dropped more than 5% and surged to levels below $1,600, similar to Bitcoin. It tested the $1,550 support and traded to $1,552. Ether is currently trading below $1,650 and the 100-hour Simple Moving Average.

The bulls are now pushing the price above the 23.6% Fib retracement level from highs of $1,789 to lows of $1,552. On the upside, the price is facing resistance near $1,620.

The next major resistance is near $1,660 and $1,670. Approaching the 50% Fib retracement level of the downward move from the high of $1,789 to the low of $1,552. A clear breakout of $1,670 could lead the price towards the $1,700 levels.

Source: ETHUSD on TradingView.com

There is also a resistance near $1,700 and a bearish trend line formed by the 100-hour Simple Moving Average on the ETH/USD hourly chart. Any further rally could open the door for a move towards the $1,780 resistance in the short term.

Further loss of ETH?

If Ethereum fails to break out of the $1,660 resistance, it may continue to fall. The first support on the downside is near $1,580.

The next major support is close to $1,550. A break below the $1,550 support could result in further losses. In the aforementioned case, the Ether price could fall towards the $1,500 level. Any more losses could push the price to his $1,440 mark.

technical indicator

Hourly MACD – The ETH/USD MACD is currently losing momentum in the bearish zone.

Hourly RSI – The ETH/USD RSI is currently climbing towards the 50 level.

Major Support Level – $1,500

Major Resistance Level – $1,660