Ethereum Price Hints At Potential Correction, Buy The Dip?

Ethereum price is struggling to clear the $1,720 resistance against the US Dollar. ETH could rally if there is a close above $1,720 and $1,740 in the near term.

• Ethereum is struggling to gain pace for a move above $1,720.
• The price is trading above $1,650 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $1,700 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 $1,635 support.

Ethereum Price Aims Higher

Ethereum price attempted more gains above the $1,720 resistance zone. ETH spiked above the $1,720 level before the bears appeared and protected more upsides, similar to bitcoin.

Earlier, there was a break below a major bullish trend line with support near $1,700 on the hourly chart of ETH/USD. Recently, the price traded as high as $1,726 before there was a bearish reaction. The price declined below the $1,700 and $1,680 levels.

A low is formed near $1,651 and the price is now rising. It climbed above the 50% Fib retracement level of the recent decline from the $1,726 swing high to $1,651 low.

Ether price is now trading above $1,650 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,700 level. The next major resistance is near the $1,720 zone. A proper close above the $1,720 resistance zone could send the price towards $1,740.

Source: ETHUSD on TradingView.com

The 1.236 Fib extension level of the recent decline from the $1,726 swing high to $1,651 low is also near $1,740. Any more gains might open the doors for a move towards the $1,800 level.

Dips Limited in ETH?

If ethereum fails to clear the $1,720 resistance, it could start another downside correction. An initial support on the downside is near the $1,665 level and the 100 hourly SMA.

The next major support is near the $1,635 zone. If there is a break below $1,635, 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

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

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

Major Support Level – $1,635

Major Resistance Level – $1,720