A couple of hours ago, Ethereum (ETH), the second-largest cryptocurrency by market cap, traded as high as $1,437 before embarking on a correction against the USD. The price of ETH is approaching key support at $1,340 and $1,320.
Ethereum (ETH) Is Correcting Gains
Some hours ago, we saw a sharp increase in Ethereum (ETH) above $1,350 and $1,400. ETH price traded above the $1,420 resistance and traded as high as $1,437 before starting a downside correction.
There was a short-term downside correction below the $1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. ETH is now trading below $1,380 and it is approaching a couple of important supports at $1,340.
Source: ETHUSD on TradingView.com
There is also a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD. Immediate support is near the $1,325 level, where the bulls are likely to take control.
The 50% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. If there is a downside break below $1,325, there are chances of a drop towards the $1,280 level. The 100 hourly simple moving average is also near the $1,280 support zone. Any more losses could lead the price towards the $1,250 and $1,220 support levels.
Fresh Increase in Ethereum (ETH) after the Healthy Correction?
If the price of Ethereum (ETH) remains stable above the $1,280 support zone, it could start a fresh increase. An initial resistance is near the $1,400 level and the channel upper trend line.
A close above the channel resistance could open the doors for more gains towards the $1,440 level. A clear break above the $1,440 zone could clear the path for a push towards the $1,500 resistance zone in the coming sessions. The next key target could be near the $1,550 and $1,580 levels.