TA: Ethereum Corrects Lower, Why Dips In ETH Remain Attractive

Aayush Jindal

4 years ago

2 mins read

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Ethereum traded as high as $1,437 before starting a downside correction against the US Dollar. ETH price is approaching a key support at $1,340 and $1,320.

Ethereum surged above $1,400 and traded towards the $1,440 zone.
The price is currently correcting lower from $1,437, but it is well above the 100 hourly simple moving average.
There is a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct further, but the price is likely to remain stable above $1,340 and $1,325.

Ethereum Price is Correcting Gains

Yesterday, we saw a sharp increase in Ethereum above $1,350 and $1,400. ETH price traded above the $1,420 resistance, and traded as high as $1,437 before starting a downside correction.

There was a short-term downside correction below the $1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. Ether is now trading below the $1,380 and it is approaching a couple of important supports at $1,340.

Source: ETHUSD on TradingView.com

There is also a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD. An immediate support is near the $1,325 level, where the bulls are likely to take control.

The 50% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. If there is a downside break below $1,325, there are chances of a drop towards the $1,280 level. The 100 hourly simple moving average is also near the $1,280 support zone. Any more losses could lead the price towards the $1,250 and $1,220 support levels.

Fresh Increase in ETH?

If ethereum remains stable above $1,280 support zone, it could start a fresh increase. An initial resistance is near the $1,400 level and the channel upper trend line.

A close above the channel resistance could open the doors for more gains towards the $1,440 level. A clear break above the $1,440 zone could clear the path for a push towards the $1,500 resistance zone in the coming sessions. The next key target could be near the $1,550 and $1,580 levels.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is correcting lower below the 50 level.

Major Support Level – $1,280

Major Resistance Level – $1,400

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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