TA: Why Ethereum Could Correct To $1,750 Before A Fresh Increase

Ethereum failed to stay above $1,900 and corrected lower against the US Dollar. ETH price is correcting gains and it seems like to might test $1,750 before a fresh increase.

  • Ethereum is correcting lower from the $1,975 swing high and trading below $1,900.
  • The price is now testing the $1,850 support, but it is below the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $1,850 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could dip further, but the bulls are likely to remain active near $1,750.

Ethereum Price is Correcting Gains

Ethereum made another attempt to settle above $2,000, but it failed. The recent swing high was formed near $1,976 before ETH price started a fresh decline.

There was a break below the $1,950 and $1,900 support levels. Ether price even tested the $1,850 support level and it is now trading well below the 100 hourly simple moving average. A low is formed near $1,853 and the price is currently consolidating losses.

An initial resistance on the upside is near the $1,880 level. It is close to the 23.6% Fib retracement level of the recent drop from the $1,976 high to $1,853 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $1,910 level or the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent drop from the $1,976 high to $1,853 low. The main resistance is now forming near the $1,940 level and a connecting bearish trend line on the hourly chart of ETH/USD.

To start a fresh increase, the price must settle above $1,910 and then gain momentum above the $1,950 level. In the stated case, the price could easily clear the $2,000 level.

Dips Supported in ETH?

If Ethereum fails to extend its rise above the $1,950 level, it could continue to move down. The first major support is near the $1,850 level.

There is also a major bullish trend line forming with support near $1,850 on the same chart. A clear break below the trend line support and $1,830 could open the doors for a move towards the $1,750 support zone in the near term.

Technical Indicators

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

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

Major Support Level – $1,850

Major Resistance Level – $1,950



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