Ethereum started a strong increase above the $1,550 and $1,600 resistance levels against the US Dollar. ETH price is likely to continue higher towards the $1,700 and $1,720 resistance levels.
This past week, bitcoin and ethereum saw a downside correction below $48,000 and $1,550 respectively against the US Dollar. ETH even traded below the $1,500 support zone and settled well below the 100 simple moving average (4-hours).
It traded as low as $1,444 before correcting higher. The bulls were able to push the price convincingly above the $1,500 and $1,550 resistance levels. There was also a break above a connecting bearish trend line at $1,540 on the 4-hours chart of ETH/USD.
Source: ETHUSD on TradingView.com
Ether price climbed steadily and cleared the 76.4% Fib retracement level of the downward move from the $1,657 high to $1,444 low. It is now trading well above $1,600 and the 100 simple moving average (4-hours). There is also a major bullish trend line forming with support near $1,550 on the same chart.
On the upside, the first major resistance is near the $1,700 level. The 1.236 Fib extension level of the downward move from the $1,657 high to $1,444 low is also near $1,720. A successful break above $1,700 and $1,720 could open the doors for a move towards $1,800.
If Ethereum fails to extend its rise above the $1,700, there could be a downside correction. An immediate support is near the $1,600 level. The next support is near the 100 hourly SMA at $1,575.
The main support is now forming near the trend line and $1,550. If ether price fails to stay above the trend line support, there is a risk of a larger decline in the coming sessions.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is well above the 50 level.
Major Support Level – $1,550
Major Resistance Level – $1,700
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