Ethereum started a downward correction from the $ 746 year high against the US dollar. ETH price is likely to find strong bids near the USD 684 and USD 675 support levels.
- Ethereum hit a new annual high of $ 746 before initiating a downward correction.
- The price is now trading near $ 700 but is above the 100 hour simple moving average.
- A major bullish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 675.
- The pair could continue to move higher as long as it is above $ 684 and $ 675.
Ethereum price corrects profits
Ethereum saw additional gains above the USD 720 resistance level. ETH price gained momentum above the $ 730 level and was well above the 100-hour simple moving average.
The price even surged above the $ 740 level but failed to test the $ 750 mark. A new year high was formed near $ 746 before the ether price began a downward correction. There has been a sharp drop in xrp, which is dragging both Bitcoin and Ether down.
The price has been corrected below the USD 720 support level. There was also a break below the 50% fib retracement level of the move up from the $ 661 swing low to the $ 746 high.
Source: ETHUSD on TradingView.com
The first major support on the downside is near the $ 684 level. It is also close to the 76.4% Fib retracement level of the move up from the $ 661 swing low to the $ 746 high. In addition, a major bullish trendline is forming on the hourly ETH / USD chart with support near USD 675.
The 100-hour SMA is also close to trendline support and $ 670. Further losses could move the price towards the $ 650 support.
New rise in ETH?
If Ethereum stays above the USD 684 support or trendline it could see another spike. Initial resistance to the upside is near the USD 715 level.
The first major resistance is near the USD 720 level. A significant break above the USD 720 level could potentially increase the likelihood of a new bullish wave. In the given case, Ether will most likely test the $ 750 resistance level.
Technical indicators
Hourly MACD – – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
Hourly RSI – – The RSI for ETH / USD is currently below the 50 level.
Main Support Tier – $ 684
Main Resistance Level – $ 720
