Ethereum (ETH) Faces Hurdle, Start of Another Decline Or Buying Opportunity

Ethereum’s ETH gained pace and spiked above $1,700. It is now struggling near $1,750 and might dip in the short-term.

Ethereum (ETH) Price Starts Consolidation

This past month, ethereum climbed above the $1,500 resistance level against the US Dollar. The ETH/USD pair even cleared the $1,550 level and the 50-day simple moving average (blue).

There was a clear move above a key bearish trend line at $1,520 on the daily chart. The bulls pumped the price above the 23.6% Fib retracement level of the key decline from the $3,578 swing high to $881 low.

Etheruem’s daily price chart | Source: ETHUSD on TradingView.com

Finally, there was a proper move above the $1,600 resistance zone. Ether is now facing a major resistance near the $1,750 and $1,760 levels (a multi-touch zone).

The last 3-4 candles suggest that ether price is struggling to continue higher above $1,750. Therefore, there are chances of a downside correction below the $1,650 level.  An immediate support sits near the $1,650 level.

The next major support is near $1,640 and a connecting bullish trend line on the same chart. A close below the $1,640 level might spark a move towards the $1,400 support.

The main support sits near the $1,260 level and the 50-day simple moving average (blue). Any more losses below $1,260 and $1,250 could push ether price back into a bearish zone. In the stated case, it could revisit the $1,000 support.

An immediate resistance is near the $1,700 level. The main barrier is near the $1,750 level. A clear move above the $1,750 resistance could send the price towards the $1,950 resistance.

The next major resistance is near the $2,200 level. It is near the 50% Fib retracement level of the key decline from the $3,578 swing high to $881 low. Any more gains might open the doors for a move towards the $2,500 resistance in the coming weeks.

Overall, ether price is still trading in a bullish zone above the $1,500 level. If the bulls push the price above the $1,750 resistance zone, there could be a fresh rally. Conversely, there might be a downside correction towards the $1,250 support zone.