Ethereum traded as low as $ 1,437 before starting a downward correction against the US dollar. ETH price is approaching a major support at USD 1,340 and USD 1,320.
- Ethereum rallied above USD 1,400 and traded towards the USD 1,440 zone.
- The price is currently correcting lower from $ 1,437, but well above the 100 simple hourly moving average.
- A strong downward channel is forming with support near USD 1,340 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could correct further, but the price is likely to remain stable above USD 1,340 and USD 1,325.
Ethereum price corrects gains
Yesterday we saw one sharp rise in Ethereum above USD 1,350 and USD 1,400. ETH price traded above the USD 1,420 resistance and traded as high as USD 1,437 before starting a downside correction.
In the near term, there was a downside correction below the USD 1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the $ 1,215 swing low to the $ 1,437 high. Ether is now trading below $ 1,380 and approaching a pair important supports for $ 1,340.
Source: ETHUSD on TradingView.com
A major downward channel is also forming with support near USD 1,340 on the ETH / USD hourly chart. An immediate support is near the USD 1,325 level, where the bulls are likely to take charge.
The 50% Fib retracement level of the upward wave from the $ 1,215 swing low to $ 1,437 high. If there is a downside break below USD 1,325, there is a chance of a decline towards USD 1,280. The simple 100-hour moving average is also near the USD 1,280 support zone. Even more losses could push the price towards the USD 1,250 and USD 1,220 support levels.
New increase in ETH?
If ethereum remains stable above the USD 1,280 support zone, it could start a fresh rise. An initial resistance is near the USD 1,400 level and the channel’s upper trendline.
A close above the channel resistance could open the doors for more gains towards the USD 1,440 level. A clear break above the USD 1,440 zone could pave the way for a push towards the USD 1,500 resistance zone in the coming sessions. The next major target could be near the USD 1,550 and USD 1,580 levels.
MACD per hour – The MACD for ETH / USD is now slowly gaining pace in the bearish zone.
RSI per hour – The RSI for ETH / USD corrects below the 50 level.
Major Support Level – USD 1,280
Major Resistance Level – USD 1,400