TA: Ethereum Recovers Above $1,600, Why ETH Could Retest $1,500
Ethereum extended its decline below $1,500 against the US Dollar. ETH price spiked towards $1,350 and it is currently recovering above the $1,550 pivot level.
- Ethereum broke the $1,500 support zone and it even declined below $1,400 before correcting higher.
- The price is now trading above $1,600, but it is below the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,630 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could either rally above $1,650 or it might drop back towards the $1,500 support.
Ethereum Price is Recovering Losses
Ethereum failed to stay above the $1,600 and $1,500 support levels. ETH even extended its decline below the $1,450 support level and it settled well below the 100 hourly simple moving average, similar to bitcoin.
There was also a spike below the $1,400 level and the price traded as low as $1,357. The price is currently correcting losses and trading nicely above $1,500. There was a break above the 50% Fib retracement level of the recent decline from the $1,804 swing high to $1,357 swing low.
Ether price is now trading just above the $1,600 level, but it is still well below the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,630 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The pair is currently struggling to clear the 61.8% Fib retracement level of the recent decline from the $1,804 swing high to $1,357 swing low. To continue higher, the price must settle above the $1,640 and $1,650 resistance levels. The next major resistance on the upside is near $1,700. Any more gains could lead the price towards the $1,780 level.
Fresh Dip in ETH?
If Ethereum fails to continue higher above the trend line resistance and $1,650, there could be a fresh decline. An initial support on the downside is near the $1,580 level.
The first major support is near the $1,500. The main support is now forming near the $1,500 level, below which ether price may possibly revisit the $1,400 level in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,550
Major Resistance Level – $1,650
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