New Delhi(Coinchapter): Ethereum’s ETH is correcting gains from $1,310. The price must stay above $1,160 to start a fresh increase in the near term.
Ethereum Price (ETH) Corrects Lower
This past week, ethereum and bitcoin saw a decent increase against the US Dollar. The ETH/USD pair was able to surpass the $1,200 and $1,240 resistance levels to move into a short-term positive zone.
The price even climbed above the $1,280 level and the 50 simple moving average (4-hours, blue). Finally, there was a spike above the $1,300 level. However, the bears were active near the $1,310 resistance zone.
The bulls made two attempts to surpass $1,310, but they failed. The last swing high was near $1,310 before ether price started a downside correction.
The price declined below the 23.6% Fib retracement level of the upward move from the $1,075 swing low to $1,310 high. Besides, there was a break below a crucial bullish trend line with support at $1,250 on the 4-hours chart.
Ether price is now trading below $1,240 and the 50 simple moving average (4-hours, blue). An immediate resistance is near the $1,255 level.
The first major resistance is near the $1,270 level and the 50 simple moving average (4-hours, blue). A clear move above the $1,270 resistance level might send the price towards the $1,310 resistance. The next major resistance is near the $1,345 level. Any more gains might open the doors for a move towards the $1,450 resistance.
Will There Be More Downsides?
If there is no upside break above the $1,270 resistance, the price might continue to move down. An immediate support on the downside sits near the $1,192 level.
The 50% Fib retracement level of the upward move from the $1,075 swing low to $1,310 high is also near the $1,192 level. The main support sits near the $1,165 level. A close below the $1,165 level might send the price towards the $1,075 support. Any more losses below $1,075 could lead the price towards the $1,000 zone.
Overall, ether price is correcting gains below the $1,250 level. If ETH fails to stay above the $1,165 support zone, it could start a major decline towards $1,100. Conversely, the price might start another increase and this time it could even clear $1,310.
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