Ethereum Dives 7% But This Variable Can Trigger A New Rally

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 chart of ETH/USD.
Ethereum Price
The pair is down around 7% and it tested the $165 support level. A low is formed near $165 and the price is currently consolidating losses above $170. It seems like Ether is testing the 23.6% Fib retracement level of the recent decline from the $185 swing high to $165 low.
On the upside, an initial resistance is near the $173 level. The first key resistance is near the $175 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $185 swing high to $165 low is also near the $175 level.
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 Indicators
Hourly 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 – $178
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