Can Bulls Pull Off a Comeback as The Ethereum Price Drops To $1,550?

After hitting a high of $1,675, Ethereum’s price declined against the US Dollar. The price of ETH has to stay above $1,550 to start a fresh upward trend.

Around $1,605 on the ETH/USD hourly chart, a sizable downward trend line is developing. According to the data feed via Kraken, this is serving as resistance at the moment.

However, it is also expected that the Ethereum price will continue to rise consistently. This is conditional upon the pair’s price breaking out above $1,600 and $1,615.

The Price of Ethereum Makes a Downward Correction

Throughout the trading day, buyers pushed the price of Ethereum far above its daily support area of $1,550. A new rally in ETH’s price started as it crossed the $1,600 barrier level. These results were similar to the 100-hour simple moving average.

It was bid up to $1,650 but never challenged at $1,700. Finally, the market reached a new high somewhere around $1,675, after which it started to decline.

A move caused the price to drop below $1,620 and the $1,600 barrier. Ether’s price dipped below the upward run’s 50% Fibonacci retracement line. The decline started at the $1,501 swing low and culminated at $1,675 in price.

The price tested the $1,560 support level. However, it remained above the upward run’s 61.8% Fib retracement line. Ethereum is consolidating below $1,600 and the 100 hourly simple moving average. The first challenge for purchasers and bulls will come close to the $1,600 level.

Around $1,605 on the ETH/USD hourly chart, a sizable downward trend line is developing. This would present purchasers with opposition.

 

Source: ETHUSD on TradingView.com

 More Losses in ETH To Be Expected?

The next substantial region of resistance is located at $1,615 in price. The price might start to climb higher if it makes a strong move over the $1,615 resistance level. In the outlined scenario, the price may rise to a maximum of $1,675 before tumbling. Any more gains might push the price towards the $1,720 area of resistance.

A fresh decline might start if Ethereum fails to break through the $1,615 barrier level. Early support for a downward move is likely to be located close to the level of $1,560.

The next significant support is situated not far from the $1,550 mark. If it is breached, there is a chance that the price of ether may start to decline. If the above mentioned situation occurs, the price might drop temporarily towards the support region of around $1,500.