Key Takeaways:
- Ethereum is correcting gains from the $1,765 high.
- ETH traded below a major bullish trend line, with support at $1,650 on the 4-hour chart.
- The price could spike toward the $1,600 support before the bulls take a stand.
YEREVAN (CoinChapter.com) — Ethereum’s ETH is approaching crucial support at $1,600. The price could start a fresh increase unless the bears push the price below $1,600.
Ethereum Price Reaches Key Juncture
Ethereum saw a decent increase above the $1,620 and $1,650 resistance levels in the past few days. The ETH/USD pair climbed above the $1,680 level to set the pace for a larger increase.
Finally, Ether spiked above the $1,750 resistance. A high was formed near $1,765, and the price recently started a downside correction, like Bitcoin. There was a move below the $1,700 level. The price declined below the 50% Fib retracement level of the upward move from the $1,566 swing low to the $1,765 high.
More importantly, Ethereum traded below a major bullish trend line with support at $1,650 on the 4-hour chart. It is now trading below the $1,650 level and the 50 Simple moving average (4 hours, blue).
The price seems to follow a short-term declining channel with resistance at $1,640. The current price action suggests high chances of a bearish spike toward the $1,610 and $1,600 support levels.
The price might find bids near the 76.4% Fib retracement level of the upward move from the $1,566 swing low to the $1,765 high at $1,610 since it represents a multi-touch zone on the 4-hour and daily timeframes.
If the $1,600 support remains intact, Ethereum might attempt a fresh increase. The first major resistance is near the $1,665 zone. The main resistance is now at $1,695.
Therefore, a successful close above the $1,695 resistance zone could start a fresh rally in the coming days. The next major resistance could be $1,750, above which the price could rise toward the $1,880 resistance.
More Downsides in ETH?
Conversely, Ethereum might struggle to clear the $1,650 and $1,665 resistance levels. In the stated case, the bulls could fail to protect $1,600. The next major support is near the $1,565 level.
If there is a close below $1,565, there is a risk of a larger decline. The price may test the $1,480 support in the stated case. Any more losses below $1,480 could send the price toward the $1,420 zone.
Overall, Ethereum is still in a positive zone unless there is a close below $1,600. If ETH climbs above the $1,665 resistance, it could start a decent upward move. On the other hand, it could revisit the $1,565 support in the near term.
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