Ethereum is down around 7% and it broke the $175 support area against the US Dollar. ETH price could correct further, but there are many key supports, starting with $165 and $160.
- Ethereum is currently correcting lower from the $185 swing high.
- The price traded below the key $175 support to start a short term downside correction.
- There was a break below a key contracting triangle with support near $178 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is likely to find a strong buying interest near the $165 and $160 levels.
Ethereum Price Approaching Supports
After struggling to clear the $185 resistance, Ethereum started a downside correction against the US Dollar. ETH price broke the $180 and $175 support levels to move into a short term bearish zone.
There was also a close below the $175 pivot level and the 100 hourly simple moving average. More importantly, there was a break below a key contracting triangle with support near $178 on the hourly of ETH/USD.Therefore, Ethereum must recover above the $175 pivot level and $178 to start a fresh increase. The next key resistances are near the $185 and $188 levels.
More Losses?
On the downside, an initial support is near the $165 level, which is likely to act as a strong buy zone. The next major support is near the $160 level (the previous breakout zone). If Ethereum slides below the $160 support level, the bulls are likely to lose control. In the mentioned bearish case, the price might dive towards the $152 and $150 levels in the near term. Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $165 Major Resistance Level – $178Image from unsplash