By Alicia Maher
Ethereum has begun a downward spiral again from its $1,665 recent height against the US Dollar. The asset might begin another increase if it manages to remain above the $1,550 line.
Can Ethereum Hold Ground
Ethereum is declining at the moment from its highest point in recent times. The asset currently trades above the $1,550 line and its 100-hour simple moving average. There is a major downward channel forming with some level of resistance close to $1,600 on the ETH/USD hourly chart.
The ETH/USD pair might begin another increase if it manages to remain above $1,550. Ethereum’s price is in a relatively positive area above both the $1,450 resistance and the $1,500 resistance points. The asset, however, gained some pace and was trading above the $1,550 area and it closed above the 100-hour simple moving average.
Ethereum’s price recently surpassed the $1,600 level and traded at a fresh high of $1,664. But it began to correct slightly under the $1,620 and $1,600 lines. It even went below the 23.5% Fibonacci retracement level related to the increasing movement from the lower swing of $1,485 to the $1,664 high.
The asset currently trades at $1,580, above $1,550 and above the 100-hour simple moving average. Now, a major declining channel is being formed with considerable resistance close to $1,600 on the ETH/USD pair chart.
Possible Cases
The immediate resistance to Ethereum’s price rise is just close to $1,600. It is also close to the channel’s trend line area. The price’s first major resistance, therefore, will be close to the $1,650 and $1,665 areas.
If Ethereum’s price gets beyond that level, then it might resume its bullishness. In this scenario, the price might be testing $1,700 in a short time.
If there happens to be a decisive break above the $1,700 resistance line, then it might set a pace for a further increase. If that scenario is pushed further, then $1,720 will be in clear view.
But if, on the other hand, Ethereum fails to rise beyond $1,600, then it might keep sliding downward. The first line of support it would hit is close to $1,565 and close to the 100-hour simple moving average.
The 50% Fibonacci retracement level is equally close to the $1,565 line. Any downward movement under the $1,550 line might see the price spiraling toward $1,500. It would be the closest support line for the short term.