Ethereum (ETH) Bullish Despite Recent Drop, What Could Trigger Fresh Rally

Ethereum’s ETH started a downside correction below $1,500. It is still trading above the key $1,335 and $1,260 support levels.

Ethereum (ETH) Price Remains Supported

This past week, ethereum climbed above the $1,550 resistance level against the US Dollar. The ETH/USD pair even cleared the $1,600 level and the 50 simple moving average (4-hours, blue).

However, the bears were active near the $1,650 and $1,660 levels. Ether made two attempts to continue higher above $1,650 but failed. A high was formed near $1,665 and the price started a downside correction.

Etheruem’s 4-hours price chart | Source: ETHUSD on TradingView.com

There was a downside correction below the $1,550 and $1,500 levels. The price even traded below the 23.6% Fib retracement level of the key upward move from the $1,005 swing low to $1,665 high.

Besides, the price traded below a key bullish trend line with support at $1,560 on the 4-hours chart. It settled below the $1,500 support and the 50 simple moving average (4-hours, blue). The bulls appeared near the $1,350 zone.

Ether price stayed above the 50% Fib retracement level of the key upward move from the $1,005 swing low to $1,665 high. It is now rising and trading above $1,450.

An immediate resistance is near the $1,500 level and the 50 simple moving average (4-hours, blue). A clear move above the $1,500 resistance could send the price towards the $1,600 resistance.

The next major resistance is near the $1,665 level. Any more gains might open the doors for a move towards the $1,750 resistance, above which the bulls push the price towards the $1,800 level in the near term.

If there is no move above the $1,500 resistance, ETH price might start another decline. An immediate support sits near the $1,335 level. The next major support is near $1,260. A close below the $1,260 level might spark a sharp decline.

Overall, ether price is still trading in a bullish zone above the $1,335 level. If the bulls push the price above the $1,500 resistance zone, there could be a fresh rally. Conversely, there might be a downside break below the $1,335 and $1,260 support levels.