New Delhi(CoinChapter): Ethereum’s ETH is correcting gains below the $1,600 level. The price must stay above the $1,430 level to start a fresh leg higher in the near term.
Ethereum Price (ETH) Drops $200 From Highs
In the past few sessions, ethereum and bitcoin saw a bearish reaction against the US Dollar. The ETH/USD pair failed to clear the $1,700 resistance zone and started a fresh decline.
There were multiple rejections noted near $1,700 before the price declined. There was a clear move below the $1,620 and $1,600 support levels. Besides, the price traded below a major ascending channel with support at $1,575 on the 4-hours chart.
Etheruem price 4-hours price chart | Source: ETH/USD on TradingView.com
The price even settled below the $1,600 level and the 50 simple moving average (4-hours, blue). Ether price is now trading near the last swing low at $1,536.
If there is an upside correction, ethereum price might face sellers near the $1,560 level. A clear move above the $1,560 resistance level might send the price towards the $1,575 resistance and the broken channel zone.
The next major resistance is near the $1,600 level. Any more gains might open the doors for a move towards the $1,640 resistance or even $1,700.
More Downsides in ETH?
Conversely, ethereum price might continue to move down below the $1,536 support. An immediate support on the downside sits near the $1,500 level. It is close to the 1.236 Fib extension level of the upward move from the $1,536 swing low to $1,714 high.
The next major support is near the $1,430 zone or the 1.618 Fib extension level of the upward move from the $1,536 swing low to $1,714 high.
A close below the $1,430 and $1,420 support levels could spark a sharp move towards the $1,320 support. Any more losses below $1,320 could send the price towards the $1,200 zone in the coming days.
Overall, ether price is showing a few bearish signs below $1,600 and the 50 simple moving average (4-hours, blue). If ETH declines below $1,500, it could even revisit the $1,430 support. Conversely, the price might start a decent increase and attempt a clear move above $1,600.
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