Ethereum Price Close Below $1,600 Could Spark Larger Degree Correction

Ethereum price failed again to clear the $1,700 resistance against the US Dollar. ETH is retesting the $1,600 support, below which it could accelerate lower.

• Ethereum started another decline from the $1,700 resistance zone.
• The price is now trading below $1,650 and the 100 hourly simple moving average.
• There is a connecting bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could accelerate lower if there is a close below the $1,600 support.

Ethereum Price Revisits Key Support

Ethereum price attempted an upside break above the $1,700 level, similar to bitcoin at $23,500. ETH failed to clear the $1,700 resistance zone and started a fresh bearish wave.

There was a drop below the $1,660 and $1,650 support levels. The price even retested the key $1,600 support zone. A low is formed near $1,610 and the price is now consolidating losses. Ether price is now trading below $1,650 and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD. An immediate resistance is near the $1,630 level. It is close to the 23.6% Fib retracement level of the downward move from the $1,698 swing high to $1,610 low.

The next major resistance is near the $1,640 level or the trend line or the 50% Fib retracement level of the downward move from the $1,698 swing high to $1,610 low.

Source: ETHUSD on TradingView.com

An upside break above the $1,650 resistance zone could start a fresh increase. In the stated case, the price may perhaps rise towards the $1,700 resistance. Any more gains might send ether price towards the $1,800 resistance zone.

Downside Break in ETH?

If ethereum fails to clear the $1,650 resistance, it could continue to move down. An initial support on the downside is near the $1,610 level.

The next major support is near the $1,600 zone. If there is a break below $1,600, the price might accelerate lower towards the $1,550 support. Any more losses might call for a test of the $1,530 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,650