Ethereum price saw a key technical correction but the 100 Simple Moving Average (SMA) is still strong. The price had spiked above the $1,700 resistance before the bears took a stand. Ethereum is still trading above the $1,600 level and the 100 hourly SMA.
A major bullish trend line is forming with support near the $1,640 level on the hourly chart of ETH/USD (data feed via Kraken). The pair could start another increase unless there is a clear move below the $1,600 support.
Ethereum attempted more gains above the $1,700 resistance zone. The price spiked above the $1,700 level before the bears took a stand, similar to Bitcoin. A new weekly high was formed near $1,745 before there was a sharp decline. The price declined below the $1,700 and $1,680 levels.
The bulls were active above the $1,620 support. On the upside, the price is facing resistance near the $1,680 level. The next major resistance is near the $1,700 zone. A proper close above the $1,700 resistance zone could start a steady increase. In the stated case, the price may perhaps rise towards the $1,780 resistance.
If Ethereum fails to clear the $1,700 resistance, it could continue to move down. An initial support on the downside is near the $1,640 level and the trend line. The next major support is near the $1,640 zone or the 100 hourly SMA or the 61.8% Fib retracement level of the upward move from the $1,544 swing low to $1,745 high.
If there is a break below $1,600, the price might continue to drop and move towards the $1,565 support. Any more losses might call for a test of the $1,500 level. Technical indicators such as the Hourly MACD and the Hourly RSI are now losing momentum in the bearish zone. The major support level is $1,640 while the major resistance level is $1,700.
Overall, Ethereum price saw a key technical correction but the 100 SMA is still strong. The bulls are actively defending the $1,600 support zone and the trend line. As long as the price is above $1,600, it could start another increase towards the $1,780 resistance zone. On the downside, a break below the $1,600 support could start a bearish wave and the price may even test the $1,500 level.
