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HomeAltcoin NewsEthereum Price Analysis: ETH Starts Major Downside Correction

Ethereum Price Analysis: ETH Starts Major Downside Correction

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  • Ethereum price traded to a new all-time high at $2,043 before correcting lower against the US Dollar.
  • ETH price is currently trading well below $1,750 and the 55 simple moving average (4-hours).
  • There was a break below a major bullish trend line with support near $1,840 on the 4-hours chart (data feed from Coinbase).
  • The pair is likely to continue lower towards the $1,640 and $1,600 levels in the near term.

Ethereum price is correcting gains from well above $2,000 against the US Dollar. ETH/USD is likely to revisit $1,600 before it could climb again.

Ethereum Price Analysis

After a close above $1,850, Ethereum extended its rise against the US Dollar. ETH even broke the $1,950 and $2,000 resistance levels. It traded to a new all-time high at $2,043 and settled above the 55 simple moving average (4-hours).

However, the price failed to extend gains above $2,050 and recently corrected lower. There was a sharp decline below the $1,850 support level. There was also a break below a major bullish trend line with support near $1,840 on the 4-hours chart.

The price dived below the $1,750 support and the 55 simple moving average (4-hours). It even spiked below $1,600 and traded as low as $1,510. Recently, there was an upside correction above $1,600 and $1,650.

The price climbed above the 23.6% Fib retracement level of the downward move from the $2,043 high to $1,510 low. However, the price failed to continue higher above the $1,800 level.

It seems like the bulls failed near the 50% Fib retracement level of the downward move from the $2,043 high to $1,510 low. The price is moving lower and trading well below $1,750. It seems like the price might continue to move down towards $1,600. The next major support sits near the $1,500 level.

Conversely, the price might start a fresh increase above the $1,750 and $1,800 resistance levels. The main resistance is now forming near $1,850 and the 55 simple moving average (4-hours).

Ethereum Price
Ethereum Price

Looking at the chart, Ethereum price is clearly trading in a bearish zone below $1,850 and the 55 simple moving average (4-hours). Overall, ether price likely to continue lower towards the $1,640 and $1,600 levels 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 well below the 50 level.

Key Support Levels – $1,600, followed by the $1,500 zone.

Key Resistance Levels – $1,750 and $1,850.

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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