Ethereum Price Retreats — Temporary Breather or Trend Shift?

Ethereum price started a downside correction below the $1,800 level. ETH is now testing the $1,750 zone and might dip further toward $1,700.

• Ethereum started a downside correction and traded below the $1,780 level.

• The price is trading below $1,775 and the 100-hourly Simple Moving Average.

• There was a break below a connecting bullish trend line with support at $1,800 on the hourly chart of ETH/USD (data feed via Kraken).

• The pair could start a fresh increase if it clears the $1,785 resistance zone.

Ethereum Price Starts Downside Correction

Ethereum price remained stable above the $1,720 level and started a fresh increase, like Bitcoin. ETH traded above the $1,750 and $1,780 levels. The bulls even pumped the price above the $1,800 level.

A high was formed near $1,850 and the price recently started a downside correction. There was a move below the 50% Fib retracement level of the upward move from the $1,723 swing low to the $1,848 high. The price even dipped below the $1,800 level.

There was a break below a connecting bullish trend line with support at $1,800 on the hourly chart of ETH/USD. The bulls are now active near the 76.4% Fib retracement level of the upward move from the $1,723 swing low to the $1,848 high.

Ethereum price is now trading below $1,780 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $1,775 level. The next key resistance is near the $1,800 level. The first major resistance is near the $1,820 level. A clear move above the $1,820 resistance might send the price toward the $1,850 resistance.

An upside break above the $1,850 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $1,920 resistance zone or even $2,000 in the near term.

More Losses In ETH?

If Ethereum fails to clear the $1,800 resistance, it could start a fresh decline. Initial support on the downside is near the $1,750 level. The first major support sits near the $1,700 zone.

A clear move below the $1,700 support might push the price toward the $1,650 support. Any more losses might send the price toward the $1,620 support level in the near term. The next key support sits at $1,550.

Technical Indicators

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

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

• Major Support Level – $1,750

• Major Resistance Level – $1,800