27 October 2023
Ethereum price started a downside correction from the $1,866 high against the US dollar. ETH must stay above the $1,750 support to start a fresh increase.
Ethereum failed to gain strength above $1,850 and corrected lower.
The price is trading above $1,750 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support near $1,810 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its decline if it fails to stay above the $1,750 support.
Ethereum Price Signals Downside Correction
Ethereum attempted a fresh increase above the $1,820 level. ETH even cleared the $1,850 resistance, but the upsides were limited. The price traded as high as $1,866 and recently started a downside correction, like Bitcoin.
There was a move below the $1,810 and $1,800 levels. Besides, there was a break below a key bullish trend line with support near $1,810 on the hourly chart of ETH/USD. The pair traded close to the $1,750 support before the bulls emerged.
A low is formed near $1,763 and the price is now consolidating. It is trading near the 23.6% Fib retracement level of the downside correction from the $1,866 swing high to the $1,763 low.
Ethereum is now trading above $1,750 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $1,815 level. It is close to the 50% Fib retracement level of the downside correction from the $1,866 swing high to the $1,763 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,850 zone. A close above the $1,850 resistance could start a decent increase. In the stated case, Ether could surpass $1,865 and test $1,920. The next key resistance is near $1,950, above which the price could accelerate higher. In the stated case, the price could rise toward the $2,000 level.
More Losses in ETH?
If Ethereum fails to clear the $1,815 resistance, it could start another decline. Initial support on the downside is near the $1,765 level.
The next key support is $1,750 and the 100-hourly Simple Moving Average. A downside break below the $1,750 support might send the price further lower. In the stated case, Ether could drop toward the $1,700 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,750
Major Resistance Level – $1,815