Ethereum is up over 5% and trading above $1,650 against the US Dollar. ETH could rise further if it clears the $1,700 resistance zone.
- Ethereum gained pace and rallied above the $1,660 resistance zone.
- The price is now trading above $1,650 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could more upsides if it clears the $1,700 resistance zone.
Ethereum Price Gains Bullish Momentum
Ethereum price found a strong support near the $1,550 zone. A base was formed and ETH price started a fresh increase above the $1,600 resistance zone, similar to bitcoin.
There was a clear move above the $1,620 and $1,650 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $1,580 on the hourly chart of ETH/USD. A high is formed near $1,697 and the price is now consolidating gains.
It is trading above the 23.6% Fib retracement level of the recent rally from the $1,558 swing low to $1,697 high. Ether price is now trading above $1,650 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance is near the $1,700 level. The next major resistance is near the $1,720 level. An upside break above the $1,720 resistance zone could spark anther steady increase. In the stated case, the price may perhaps rise towards the $1,800 resistance. Any more gains might send ether price towards the $1,880 resistance zone.
Dips Supported in ETH?
If ethereum fails to clear the $1,700 resistance, it could start a downside correction. An initial support on the downside is near the $1,665 level and the previous swing zone.
The next major support is near the $1,620 zone or the 50% Fib retracement level of the recent rally from the $1,558 swing low to $1,697 high. If there is a break below $1,620, the price might drop towards the $1,590 support. Any more losses might call for a test of the $1,550 zone or the last swing low in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,620
Major Resistance Level – $1,700
