TA: Why Ethereum Could Correct To $1,750 Before A Fresh Increase

Why Ethereum Could Correct To $1,750 Before A Fresh Increase

Ethereum failed to stay above $1,900 and corrected lower against the US Dollar. ETH price is correcting gains and it seems like to might test $1,750 before a fresh increase.

  • Ethereum is correcting lower from the $1,975 swing high and trading below $1,900.
  • The price is now testing the $1,850 support, but it is below the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $1,850 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could dip further, but the bulls are likely to remain active near $1,750.

Ethereum Price is Correcting Gains

Ethereum made another endeavor to settle above $2,000, yet it fizzled. The new swing high was shaped close $1,976 before ETH cost began a new decrease.

There was a break underneath the $1,950 and $1,900 uphold levels. Ether cost even tried the $1,850 uphold level and it is presently exchanging admirably underneath the 100 hourly basic moving normal. A low is shaped close $1,853 and the cost is presently solidifying misfortunes.

An underlying obstruction on the potential gain is close to the $1,880 level. It is near the 23.6% Fib retracement level of the new drop from the $1,976 high to $1,853 low.

Ethereum PriceSource: ETHUSD on TradingView.com

The first major resistance is near the $1,910 level or the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent drop from the $1,976 high to $1,853 low. The main resistance is now forming near the $1,940 level and a connecting bearish trend line on the hourly chart of ETH/USD.

To start a fresh increase, the price must settle above $1,910 and then gain momentum above the $1,950 level. In the stated case, the price could easily clear the $2,000 level.

Dips Supported in ETH?

If Ethereum fails to extend its rise above the $1,950 level, it could continue to move down. The first major support is near the $1,850 level.

There is also a major bullish trend line forming with support near $1,850 on the same chart. A clear break below the trend line support and $1,830 could open the doors for a move towards the $1,750 support zone in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now well below the 50 level.

Major Support Level – $1,850

Major Resistance Level – $1,950

Credit: NewsBTC

Leave A Comment

Your email address will not be published. Required fields are marked *