Ethereum Price Saw Key Technical Correction, But 100 SMA Is Still Strong

Ethereum price spiked above $1,700 before correcting lower against the US Dollar. ETH is still well supported above the $1,600 zone and the 100 hourly SMA.

• Ethereum climbed above the $1,700 resistance before the bears took a stand.
• The price is still trading above $1,600 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another increase unless there is a clear move below the $1,600 support.

Ethereum Price Drops $100

Ethereum price attempted more gains above the $1,700 resistance zone. ETH spiked above the $1,700 level before the bears took a stand, similar to bitcoin.

A new weekly high was formed near $1,745 before there was a sharp decline. The price declined below the $1,700 and $1,680 levels. There was even a spike below the 50% Fib retracement level of the upward move from the $1,544 swing low to $1,745 high.

However, the bulls were active above the $1,620 support. Ether price is still trading above $1,600 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $1,640 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

On the upside, the price is facing resistance near the $1,680 level. The next major resistance is near the $1,700 zone. A proper close above the $1,700 resistance zone could start a steady increase. In the stated case, the price may perhaps rise towards the $1,780 resistance. The next major resistance is near the $1,840 level.

More Losses in ETH?

If ethereum fails to clear the $1,700 resistance, it could continue to move down. An initial support on the downside is near the $1,640 level and the trend line.

The next major support is near the $1,640 zone or the 100 hourly SMA or the 61.8% Fib retracement level of the upward move from the $1,544 swing low to $1,745 high. If there is a break below $1,600, the price might continue to drop and move towards the $1,565 support. Any more losses might call for a test of the $1,500 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,640

Major Resistance Level – $1,700

Source