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

2023-10-03 05:52:25

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

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