Ethereum Dives 7% But This Variable Can Trigger A New Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum is down around 7% and it broke the $175 support area against the US Dollar. ETH price could correct further, but there are many key supports, starting with $165 and $160.

Ethereum is currently correcting lower from the $185 swing high.
The price traded below the key $175 support to start a short term downside correction.
There was a break below a key contracting triangle with support near $178 on the hourly chart of ETH/USD (data feed via SimpleFX).
The pair is likely to find a strong buying interest near the $165 and $160 levels.

Ethereum Price Approaching Supports

After struggling to clear the $185 resistance, Ethereum started a downside correction against the US Dollar. ETH price broke the $180 and $175 support levels to move into a short term bearish zone.

There was also a close below the $175 pivot level and the 100 hourly simple moving average. More importantly, there was a break below a key contracting triangle with support near $178 on the hourly chart of ETH/USD.

The pair is down around 7% and it tested the $165 support level. A low is formed near $165 and the price is currently consolidating losses above $170. It seems like Ether is testing the 23.6% Fib retracement level of the recent decline from the $185 swing high to $165 low.

On the upside, an initial resistance is near the $173 level. The first key resistance is near the $175 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $185 swing high to $165 low is also near the $175 level.

Therefore, Ethereum must recover above the $175 pivot level and $178 to start a fresh increase. The next key resistances are near the $185 and $188 levels.

More Losses?

On the downside, an initial support is near the $165 level, which is likely to act as a strong buy zone. The next major support is near the $160 level (the previous breakout zone).

If Ethereum slides below the $160 support level, the bulls are likely to lose control. In the mentioned bearish case, the price might dive towards the $152 and $150 levels in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bearish zone.

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

Major Support Level – $165

Major Resistance Level – $178

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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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