Ethereum started a downward correction from $1,630 against the US Dollar. ETH could extend losses if there is a clear move below the $1,480 support.
- Ethereum started a downward correction from the $1,630 resistance zone.
- The price is now trading below $1,500 and near the 100 hourly simple moving average.
- A key bullish trend line is forming with support near $1,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its downside correction if it breaks the $1,480 support.
Ethereum price begins correction
Ethereum tried another increase above the $1,600 resistance zone. However, ETH failed to break above the $1,600 level. As a result, there was a downward correction below the $1,550 level.
Ether price corrected below the $1,520 support. There was a break below the 23.6% Fib retracement level of the key swing low increase from the $1,325 high to the $1,632 high. The price is now trading below $1,500 and near the 100 hour simple moving average.
It is now approaching the key $1,480 support area. There is also a key uptrend line forming with support near $1,480 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $1,520 level. The first major resistance is seen near the $1,560 area. The main breakout zone is now forming near the $1,600 area. A clear move above the $1,600 level could trigger another major increase.
Source: ETHUSD on TradingView.com
The next key barrier is near the $1,630 level, above which the price could strengthen and hit the $1,700 resistance zone.
More losses in ETH?
If Ethereum fails to break above the $1,560 resistance, it could continue to decline. An initial downside support is seen near the $1,480 area and the trendline.
The trendline is near the 50% Fib retracement level of the key swing low increase from the $1,325 high to the $1,632 high. A clear move below the trendline support could push the price towards the $1,375 support zone. Any further losses might even push the Ether price below the $1,280 support.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,480
Major resistance level – $1,560