Ethereum’s ETH declined sharply from $1,800. The bulls are now protecting the $1,550 support and they might aim a fresh rally.
Ethereum (ETH) Price Visits Key Support
This past week, ethereum saw a strong increase above the $1,600 resistance zone against the US Dollar. The ETH/USD pair gained pace for a move above the $1,700 level and the 50 simple moving average (4-hours, blue).
Finally, the price broke the $1,750 level and traded close to the $1,800 resistance. However, the bears remained active below the $1,800 level. A high was formed near $1,790 and ether price reacted to the downside.
Etheruem’s 4-hours price chart | Source: ETH/USD on TradingView.com
There was a fresh declined below the $1,750 and $1,700 levels. The bears pushed the price below the $1,600 level and the 50 simple moving average (4-hours, blue).
It tested the $1,550 support zone and formed a low at $1,553. The price also tested a key bullish trend line with current support at $1,570 on the 4-hours chart. Ether price is now consolidating losses above the $1,550 level and near the 23.6% Fib retracement level of the recent slide drop from the $1,790 swing high to $1,553 low.
An immediate resistance is near the $1,670 level. It is near the 50% Fib retracement level of the recent slide drop from the $1,790 swing high to $1,553 low. The 50 simple moving average (4-hours, blue) is also near the $1,670 level.
The main hurdle seems to be forming near the $1,700 level. A successful close above the $1,700 level might send the price towards the $1,800 resistance zone. Any more gains might open the doors for a move towards the $2,000 resistance.
If there is no fresh rally, the price might continue to move down. An immediate support on the downside sits near the $1,560 level and the trend line. The next major support is near $1,525 and $1,500 levels. A close below the $1,500 level might start a strong bearish wave. In the stated case, there is a risk of a move towards the $1,320 zone.
Overall, ether price trimmed most gains and retested the $1,550 support. It is now holding an important support and might attempt a fresh rally towards $1,800. Conversely, there might be a fresh drop towards the $1,500 support zone or even $1,320.
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