NEW DELHI (CoinChapter.com) — Ethereum (ETH) is currently correcting lower below $2,250. The bulls are still in control and they might aim for a fresh increase toward $2,500.
Ethereum Price Starts Downside Correction
Earlier this month, Ethereum price saw a strong increase above the $2,000 resistance. ETH gained over 20% and broke many barriers near the $2,200 to move further into a positive zone. Finally, the bears appeared near the $2,400 zone.
A high was formed near $2,404 and the price is now correction gains, like Bitcoin. The price declined below the $2,280 and $2,250 support levels. The bears were able to push the price below the 23.6% Fib retracement level of the main move from the $1,906 swing low to the $2,404 high.
Ethereum is now consolidating near the $2,180 zone and well above the 50-day simple moving average (blue). More importantly, the price is still above a key bullish trend line with support at $2,150 on the daily chart.
The trend line is close to the 50% Fib retracement level of the main move from the $1,906 swing low to the $2,404 high. If ETH remains stable above the trend line, there could be a fresh increase.
Immediate resistance on the upside is near the $2,280 level. The first key resistance is near the $2,320 zone. A successful break above the $2,320 resistance could set the tone for a larger increase. The next resistance could be $2,400, above which the price could drift toward the main target of $2,500.
More Losses in ETH?
Conversely, Ethereum might fail to stay above the trend line support and extend losses. The next major support is near the $2,000 zone and the 50-day simple moving average (blue). It is an important barrier for the bears and might be the last line of defense.
If the price fails to stay above the 50-day simple moving average (blue), there could be a sustained decline. The next support might be $1,800. Any more losses could send Ether toward the $1,520 support in the coming weeks.
Overall, Ethereum price is correcting gains, but it is still well above key support such as $2,150 and $2,000. ETH could start a fresh increase unless there is a weekly close below $2,000.
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