Ethereum Price Saw Key Technical Correction, But Bullish Bias Is Still Strong
Ethereum Price (ETH) Holds Uptrend Support | Photo by Kanchanara on Unsplash
Ethereum’s ETH is eyeing more gains above the $1,600 level. The price must stay above the $1,500 level to start another leg higher in the near term.
Ethereum Price (ETH) Holds Uptrend Support
This month, ethereum and bitcoin started a strong increase against the US Dollar. The ETH/USD pair formed a base above the $1,220 level before it started a fresh increase.
There was a clear move above the $1,350 and $1,400 levels. The price settled above the $1,550 resistance zone and the 50 simple moving average (4-hours, blue). It opened the doors for more gains towards the $1,600 level.
Etheruem price 4-hours price chart | Source: ETH/USD on TradingView.com
The price traded as high as $1,679 and is currently correcting gains. There was a drop below the $1,600 level, but the bulls were active above the $1,500 level. A low is formed near $1,516 and the price is now attempting another increase.
Ethereum climbed above the 50% Fib retracement level of the downside correction from the $1,679 swing high to $1,516 low. However, the bulls are protecting an upside break above the $1,600 zone and the 50 simple moving average (4-hours, blue).
An immediate support on the downside sits near the $1,550 level. The next major support is near the $1,535 level. There is also a key contracting triangle forming with support at $1,535 on the 4-hours chart.
The main support sits near the $1,500 level. A close below the $1,510 and $1,500 support levels could spark a sharp move towards the $1,440 support. Any more losses below $1,440 could send the price towards the $1,250 zone.
More Upsides in ETH?
If not, the bulls could stage a fresh increase above the $1,600 level. An immediate resistance is near the $1,620 level. It is near the 61.8% Fib retracement level of the downside correction from the $1,679 swing high to $1,516 low.
A clear move above the $1,620 resistance level might send the ethereum price towards the $1,700 resistance. The next major resistance is near the $1,785 level. Any more gains might open the doors for a move towards the $1,850 resistance or even $1,920.
Overall, ether price is consolidating gains above the $1,500 level. If ETH climbs further above $1,620, it could even surpass the $1,700 resistance zone. Conversely, the price might start another decline and revisit the $1,500 support or even $1,440.
The post Ethereum Price Saw Key Technical Correction, But Bullish Bias Is Still Strong appeared first on CoinChapter.
Filed under: Bitcoin - @ January 27, 2023 5:32 pm