Ethereum was trading as high as $ 1,437 before initiating a downward correction against the US dollar. ETH price is approaching major support at USD 1,340 and USD 1,320.
- Ethereum surged above $ 1,400 and traded towards $ 1,440.
- The price is currently correcting lower from $ 1,437 but is well above the 100-hour simple moving average.
- A heavily bearish channel is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 1,340.
- The pair could continue to correct, but the price should remain stable above $ 1,340 and $ 1,325.
Ethereum price corrects profits
Yesterday we saw Ethereum spike sharply above $ 1,350 and $ 1,400. ETH price traded above the USD 1,420 resistance and traded up to USD 1,437 before initiating a downward correction.
There was a short-term downward correction below the $ 1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the low of $ 1,215 to the high of $ 1,437. Ether is now trading below $ 1,380 and is approaching some key supports at $ 1,340.
Source: ETHUSD on TradingView.com
There is also a heavily bearish channel with support near USD 1,340 on the ETH / USD hourly chart. Immediate support is near the $ 1,325 level where the bulls are likely to take control.
The 50% Fib retracement level of the upward wave from the low of $ 1,215 to $ 1,437. If there is a downside break below the $ 1,325, there is a possibility of a decline towards the $ 1,280 level. The 100 hour simple moving average is also near the USD 1,280 support zone. Further losses could push the price towards the USD 1,250 and USD 1,220 support levels.
New rise in ETH?
If Ethereum stays stable above the USD 1,280 support zone, it could see another spike. Initial resistance is near the $ 1,400 level and the upper trendline of the channel.
A close above the channel resistance could open the doors for further gains towards the $ 1,440 level. A clear break above the USD 1,440 zone could pave the way for a push towards the USD 1,500 resistance zone in the upcoming sessions. The next key target could be near the $ 1,550 and $ 1,580 levels.
Technical indicators
Hourly MACD – – The MACD for ETH / USD is now slowly gaining pace in the bearish zone.
Hourly RSI – – The RSI for ETH / USD corrected below 50.
Main support tier – $ 1,280
Main Resistance Level – $ 1,400
