Ethereum Starts Corrective Decrease, Why ETH Remains Attractive Near $1,500

Ethereum hit a new all-time high near $ 1,750 before correcting lower against the US dollar. ETH price should find strong support near $ 1,500.

  • The ETH price hit a new all-time high of $ 1,750 before falling against the US dollar.
  • The price is below $ 1,650 but well above the simple moving average of 100 (4 hours).
  • There was a break below a large contraction triangle on the 4-hour chart of ETH / USD (data feed via Kraken) with support near USD 1,660.
  • The pair could hit the $ 1,500 support level again where the bulls are likely to remain active.

Ethereum’s Ether Correctioning Gains

For the past week, Bitcoin and Ethereum have steadily surged against the US dollar above $ 1,500 and $ 36,000, respectively. ETH hit a new all-time high near $ 1,750 before encountering strong selling interest.

The price began a downward correction and traded below the $ 1,700 level. The price traded below the 23.6% fib retracement level of the move up from the low of $ 1,275 to the high of $ 1,750. There was also a break below a large contraction triangle with support near USD 1,660 on the ETH / USD 4-hour chart.

Source: ETHUSD on TradingView.com

The price is below $ 1,650 but well above the simple moving average of 100 (4 hours). The next big support is near the $ 1,500 level. The 50% Fib retracement level of the move up from the low of $ 1,275 to the high of $ 1,750 is also close to the $ 1,512 level.

Further losses could open the doors for a steady decline towards the USD 1,440 support level. The simple moving average of 100 (4 hours) is also close to $ 1,440 to act as strong support.

Fresh Increase in Ether (ETH)?

If Ethereum stays stable above $ 1,500 it could see another spike. Initial resistance to the upside is near the USD 1,700 level (the most recent breakdown zone).

The next major resistance is near the $ 1,750 level. A sharp break above the USD 1,700 and USD 1,750 resistance levels could open the doors for a sharp rise. In that case, the price could rise above the USD 1,800 and USD 1,850 levels in the short term.

Technical indicators

4 hours MACD – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.

4 hour RSI – The RSI for ETH / USD is just above the 50 level.

Main support tier – $ 1,500

Main Resistance Level – $ 1,700