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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.
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
Image Credit: Refer to Source
Author: Refer to Source Aayush Jindal