Ethereum’s ETH is correcting lower from $1,750. However, the price might extend its decline toward $1,600 or even $1,565 before the bulls take a stand.
Ethereum and Bitcoin saw a strong increase against the US Dollar this past week. As a result, the ETH/USD pair climbed above the $1,600 and $1,650 resistance levels.
The price even broke the $1,700 level before the bears appeared near $1,750. A new multi-week high was formed near $1,741 before the price started a downside correction. There was a move below the $1,700 and $1,680 support levels.
Etheruem price 4-hours price chart | Source: ETH/USD on TradingView.com
The price declined below the 23.6% Fib retracement level of the upward wave from the $1,462 swing low to the $1,741 high. The price now trades below the $1,660 level and the 50 simple moving average (4 hours, blue).
Immediate resistance is near the $1,675 level. A key declining channel is forming with resistance near $1,680 on the 4-hours chart.
The main breakout resistance is near the $1,700 zone. A successful close above the $1,700 zone and a follow-up move above the $1,720 resistance could set the pace for another steady increase. The next major resistance is near the $1,780 level. Any more gains might open the doors for a move toward the $1,840 resistance or even $1,880.
Conversely, the Ethereum price might fail to clear the $1,675 resistance zone. In the stated case, it could continue to move down. Immediate support on the downside sits near the $1,620 level.
The next major support is near the $1,600 level or the 50% Fib retracement level of the upward wave from the $1,462 swing low to the $1,741 high. If a move is below $1,600, there is a risk of an extended decline.
In this scenario, the price may perhaps test the $1,565 support. Any more losses below $1,565 could send the price toward the $1,460 zone.
Overall, Ether’s price is gaining pace above $1,650 and the 50 simple moving average (4 hours, blue). If ETH settles above $1,700, it could pump further. But conversely, the price might start a downside correction toward $1,650 or $1,580.
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