Ethereum Corrects Lower, What Could Spark A Fresh Rally
Ethereum rallied further towards $2,250 before it faced sellers against the US Dollar. ETH price is correcting lower, but the bulls are likely to remain active near $2,000.
Ethereum started a downside correction after it tested the $2,250 resistance zone.
The price is still well above $2,000 and the 100 hourly simple moving average.
There is a major bullish trend lien forming with support near $1,975 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could dip in the short-term, but the bulls might protect the $2,000 support zone.
Ethereum Price Remains Supported
Ethereum remained well bid above the $2,000 support zone and it extended its upward move. ETH surpassed the $2,150 resistance zone and the 100 hourly simple moving average.
The price even climbed above the $2,200 level. Ether tested the $2,240 zone before the bears appeared. A high was formed near $2,241 before it started a downside correction. There was a break below the $2,200 support zone.
There was also a break below a connecting bullish trend line with support near $2,160 on the hourly chart of ETH/USD. The pair is now testing the 23.6% Fib retracement level of the of the upward move from the $1,716 swing low to $2,241 high.
Source: ETHUSD on TradingView.com
The next major support is near the $2,070 level, followed by the 100 hourly SMA. There is also a major bullish trend lien forming with support near $1,975 on the same chart. The trend line is close to the 50% Fib retracement level of the of the upward move from the $1,716 swing low to $2,241 high.
Any more losses could spark a steady decline below $1,950. The next major support on the downside is near the $1,850 level.
Fresh Increase in ETH?
If Ethereum remains above the trend line support and $1,950, it could start a fresh increase. An immediate resistance on the upside is near the $2,200 level.
The next key resistance is near the $2,250 zone. Any more gains could set the pace for a move towards the $2,320 level. In the stated case, the bulls might even aim a test of $2,500 in the near term.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – $2,000
Major Resistance Level – $2,250