Ethereum started a downward correction from a new record high of $ 1,697 against the US dollar. The ETH price is holding gains above USD 1,600 and it could start a fresh rise.
- Ethereum started a downside correction below the USD 1,650 and USD 1,620 levels.
- The price is still trading well above USD 1,600 and the 100-hour easy moving average.
- A major contracting triangle is forming with resistance near USD 1,655 on the ETH / USD hourly chart (data feed via Kraken).
- The pair is likely to move higher once it clears the USD 1,655 and USD 1,660 resistance levels in the near term.
Ethereum price remains stable
After setting a new record high near $ 1,697, Ethereum initiated a short term downward correction. ETH traded below the USD 1,650 and USD 1,620 support levels. There was also a spike below the USD 1,600 level, but the price recovered quickly.
Ether is now trading well above USD 1,600 and the 100 simple hourly moving average. The recent swing low formed at USD 1,589 before the price climbed above USD 1,620.
There was a break above the 50% Fib retracement level from the recent decline from the high of $ 1,672 to the low of $ 1,589. It looks like a major contracting triangle is forming with a resistance near USD 1,655 on the ETH / USD hourly chart.
Source: ETHUSD on TradingView.com
Triangle resistance is close to the 76.4% Fib retracement level from the recent drop from the USD 1,672 high to USD 1,589 low. If there is a close above the triangle resistance at USD 1,655 and USD 1,660, the ether price could start at a new increase.
In the case mentioned, it could even surpass the USD 1,700 level in the near term. The next big resistance for the bulls above USD 1,700 could be USD 1,735 (a key expansion level).
Dips supported in ETH?
If Ethereum didn’t clear the USD 1,655 resistance level and the triangle upper trendline, it could correct further. On the downside, an initial support is near the USD 1,585 lower triangle trendline.
A downside break below the triangle support could push the price towards the USD 1,550 support zone. More losses are likely to drive the price towards the USD 1,500 support region in the coming sessions.
MACD per hour – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH / USD is currently just above the 50 level.
Major Support Level – USD 1,585
Major Resistance Level – $ 1,660