HomeAltcoin NewsEthereum Price Analysis: ETH Correction Reaches Crucial Juncture

Ethereum Price Analysis: ETH Correction Reaches Crucial Juncture

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  • Ethereum price traded as high as $1,947 before starting a downside correction against the US Dollar.
  • ETH price is currently trading near the $1,700 support and the 55 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $1,720 on the 4-hours chart (data feed from Coinbase).
  • The pair could decline heavily if there is a clear break below $1,720 and $1,700.

Ethereum price is correcting gains from well above $1,900 against the US Dollar. ETH/USD must stay above $1,700 to avoid more losses in the near term.

Ethereum Price Analysis

After forming a base above $1,500, Ethereum started a strong increase against the US Dollar. ETH broke many important hurdles near $1,550 and $1,700.

The price even climbed above $1,800 and the 55 simple moving average (4-hours). However, the price failed to test the main $2,000 resistance. A high was formed near $1,947 before the price started a downside correction. There was a break below the $1,850 and $1,800 support levels.

The price is currently trading near the $1,700 support and the 55 simple moving average (4-hours). There is also a major bullish trend line forming with support near $1,720 on the 4-hours chart.

A low is formed near $1,709 and the price is struggling to recover. An initial resistance is near the $1,765 level. It is close to the 23.6% Fib retracement level of the downward move from the $1,947 swing high to $1,709 low. The price might also face sellers near $1,800.

The main resistance is now forming near the $1,830 level. It is close to the 50% Fib retracement level of the downward move from the $1,947 swing high to $1,709 low. A clear close above the $1,800 and $1,828 levels may possibly pump the price back towards the $1,900 level.

Conversely, the price might extend its decline below the trend line and $1,720. The next key support is near the $1,650 level. Any more losses could lead the price towards the $1,600 level.

Ethereum Price
Ethereum Price

Looking at the chart, Ethereum price is clearly trading near a crucial support at $1,700. Overall, ether price could decline heavily if there is a clear break below $1,720 and $1,700 in the near term.

Technical indicators

4 hours MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now below the 50 level.

Key Support Levels – $1,700, followed by the $1,600 zone.

Key Resistance Levels – $1,800 and $1,830.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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