Ethereum Price Trims Gains But Here’s Why ETH Could Start Fresh Rally

Ethereum price corrected gains from the $1,750 zone against the US dollar. ETH is holding the key $1,620 support and might start a fresh rally. Ethereum is correcting gains from the $1,755 high. The price is trading below $1,700 and the 100-hourly Simple Moving Average. There was a break below a connecting bullish trend line with support near $1,690 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a fresh increase unless there is a close below the $1,620 support. Ethereum Price Corrects Gains Ethereum’s price extended its increase above the $1,720 level. ETH even spiked above the $1,750 resistance zone before the bears appeared, like Bitcoin. A high was formed near $1,755 before there was a downside correction. There was a move below the $1,700 support level and the 100-hourly Simple Moving Average. The price declined below the 50% Fib retracement level of the upward move from the $1,583 swing low to the $1,755 high. Besides, there was a break below a connecting bullish trend line with support near $1,690 on the hourly chart of ETH/USD. Ethereum is now trading below $1,700 and the 100-hourly Simple Moving Average. However, the price is still above the 61.8% Fib retracement level of the upward move from the $1,583 swing low to the $1,755 high. On the upside, the price might face resistance near the $1,670 level and the 100-hourly Simple Moving Average. Source: ETHUSD on TradingView.com The next major resistance is $1,700. A clear move above the $1,700 resistance zone could set the pace for a fresh increase. In the stated case, the price could visit the $1,750 resistance. The next key resistance might be $1,820. Any more gains might open the doors for a move toward $1,880. More Losses in ETH? If Ethereum fails to clear the $1,700 resistance, it could continue to move down. Initial support on the downside is near the $1,650 level. The next key support is $1,620. A downside break below the $1,620 support might start another strong bearish wave. In the stated case, there could be a drop toward the $1,580 level. Any more losses might call for a test of $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 level. Major Support Level – $1,620 Major Resistance Level – $1,700