TA: Ethereum Recovers Above $1,600, Why ETH Could Retest $1,500

Aayush Jindal

4 years ago

2 mins read

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Ethereum extended its decline below $1,500 against the US Dollar. ETH price spiked towards $1,350 and it is currently recovering above the $1,550 pivot level.

Ethereum broke the $1,500 support zone and it even declined below $1,400 before correcting higher.
The price is now trading above $1,600, but it is below the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,630 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either rally above $1,650 or it might drop back towards the $1,500 support.

Ethereum Price is Recovering Losses

Ethereum failed to stay above the $1,600 and $1,500 support levels. ETH even extended its decline below the $1,450 support level and it settled well below the 100 hourly simple moving average, similar to bitcoin.

There was also a spike below the $1,400 level and the price traded as low as $1,357. The price is currently correcting losses and trading nicely above $1,500. There was a break above the 50% Fib retracement level of the recent decline from the $1,804 swing high to $1,357 swing low.

Ether price is now trading just above the $1,600 level, but it is still well below the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $1,630 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The pair is currently struggling to clear the 61.8% Fib retracement level of the recent decline from the $1,804 swing high to $1,357 swing low. To continue higher, the price must settle above the $1,640 and $1,650 resistance levels. The next major resistance on the upside is near $1,700. Any more gains could lead the price towards the $1,780 level.

Fresh Dip in ETH?

If Ethereum fails to continue higher above the trend line resistance and $1,650, there could be a fresh decline. An initial support on the downside is near the $1,580 level.

The first major support is near the $1,500. The main support is now forming near the $1,500 level, below which ether price may possibly revisit the $1,400 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,550

Major Resistance Level – $1,650

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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