Ethereum Price Hints At Potential Correction, Buy The Dip?

2023-10-27 04:24:23

Ethereum price started a downside correction from the $1,866 high against the US dollar. ETH must stay above the $1,750 support to start a fresh increase.

Ethereum failed to gain strength above $1,850 and corrected lower.
The price is trading above $1,750 and the 100-hourly Simple Moving Average.
There was a break below a key bullish trend line with support near $1,810 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its decline if it fails to stay above the $1,750 support.

Ethereum Price Signals Downside Correction

Ethereum attempted a fresh increase above the $1,820 level. ETH even cleared the $1,850 resistance, but the upsides were limited. The price traded as high as $1,866 and recently started a downside correction, like Bitcoin.

There was a move below the $1,810 and $1,800 levels. Besides, there was a break below a key bullish trend line with support near $1,810 on the hourly chart of ETH/USD. The pair traded close to the $1,750 support before the bulls emerged.

A low is formed near $1,763 and the price is now consolidating. It is trading near the 23.6% Fib retracement level of the downside correction from the $1,866 swing high to the $1,763 low.

Ethereum is now trading above $1,750 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $1,815 level. It is close to the 50% Fib retracement level of the downside correction from the $1,866 swing high to the $1,763 low.

Source: ETHUSD on TradingView.com

The first major resistance is near the $1,850 zone. A close above the $1,850 resistance could start a decent increase. In the stated case, Ether could surpass $1,865 and test $1,920. The next key resistance is near $1,950, above which the price could accelerate higher. In the stated case, the price could rise toward the $2,000 level.

More Losses in ETH?

If Ethereum fails to clear the $1,815 resistance, it could start another decline. Initial support on the downside is near the $1,765 level.

The next key support is $1,750 and the 100-hourly Simple Moving Average. A downside break below the $1,750 support might send the price further lower. In the stated case, Ether could drop toward the $1,700 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,750

Major Resistance Level – $1,815

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