Recently, Ethereum saw a technical correction; however, this adjustment is unfortunately a negative correction, and it must float above the minimum level in order for it to continue its growth in the future.
When compared to the US dollar, Ethereum’s price was unable to sustain a position higher than $1,600. ETH is currently correcting lower and in order for it to continue gaining, it needs to maintain its position above $1,540. The price of Ethereum had a technical correction in the downward direction.
The $1,620 and $1,625 resistance levels proved to be too much for Ethereum to overcome, and the price remained stagnant.
At this time, the price is trading quite near to $1,550 as well as the 100 hourly simple moving average.
On the hourly chart of ETH/USD, a sizeable rising channel is beginning to take shape, and support can be seen close to $1,540.
It’s possible that the pair may start to ascend once more if it maintains its position above the support levels of $1,540 and $1,500.
Ethereum made an effort, but in the end was unable to succeed in trading at a price higher than $1,620. The bears were very active around the 1,620 mark, which resulted in the price beginning to drop.
Before beginning its descent, the market achieved its highest point at approximately 1,619 dollars. The price fell to a level that was lower than $1,560 and below the 100 hourly simple moving average. On the other hand, there was significant buying activity at $1,530 and $1,525 levels. The price has found support at 1,530 dollars, and it is currently consolidating its position there.
It was interesting to take note of the fact that there was a move over $1,550 as well as the 100 hourly simple moving average. The current price is higher than the 50% Fib retracement level of the most recent drop, which started at the swing high of $1,619 and ended at the low of $1,530.
At this time, it appears to be resting somewhere between $1,550 and the 100 hourly simple moving average. There is the beginning of a big rising channel building on the hourly chart of ETH/USD, with support located at $1,540. It is encountering opposition at $1,580 and $1,585, respectively.
The most recent drop, which began at a swing high of $1,619 and ended at a low of $1,530, has a 61.8% Fib retracement mark located close to the $1,585 level. At the current price of $1,620, another big resistance level is starting to take shape.
A decisive move that takes the price above $1,620 might send it hurtling towards the $1,650 resistance level. If there are any additional price hikes, then there is a chance that a route may begin to form for an assault on the $1,700 barrier in the near future.
New Signs Eth of Decline?
If Ethereum is unable to break past the $1,585 resistance level, the price may continue to decline. The area around 1,540 dollars acts as an early support level, as does the trend line for the channel.
The next important support is at $1,500, and if it is broken, then the price of ether may start to decrease. Under these circumstances, the price can drop to 1,425 dollars or even lower. Should there be any additional losses, the price might fall to $1,380.