ETH/USD remains above the $1,550 area. ETH could start a fresh rise if it breaks the $1,625 resistance zone.
- Ethereum is stable and showing positive signs above the $1,550 support area.
- The price is now above $1,560 and the 100 hourly simple moving average.
- A major contracting triangle has formed with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a fresh advance if the $1,620 and $1,625 levels are breached.
Ethereum price sees fresh rise
Ethereum started a downside correction after forming a short-term top near $1,665. ETH fell below the $1,620 and $1,600 levels.
The move from the $1,485 swing low to $1,665 high fell below the 50% Fib retracement level of the key wave. Ether price even surged below $1,580 and the 100 hourly simple moving average. However, the bulls are active near the $1,550 support area.
It was found near the 61.8% Fib retracement level of the key wave from the $1,485 swing low to $1,665 high. The price is now above $1,560 and the 100 hourly simple moving average.
There is also a major contracting triangle forming with resistance near $1,620 on the hourly chart of ETH/USD. Immediate resistance to the upside lies near $1,620 and the triangle trendline area. The first major resistance is near $1,640 and $1,650, above which the price is likely to gain bullish momentum.
Source: ETHUSD on TradingView.com
In the aforementioned scenario, the price could even test the $1,700 level. Any more gains could push the price towards the $1,800 resistance zone.
ETH’s Dips are limited?
If Ethereum fails to break the $1,625 resistance, it could continue to decline. Initial support on the downside is near $1,575 and the 100 hourly simple moving average.
The first major support is near $1,550 and the downtrend line of the triangle. A break below the $1,550 area is likely to increase selling pressure. In the above-mentioned scenario, ETH price could drop towards the $1,500 support area in the near term.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,550
Major Resistance – $1,625
Source of information: Compiled from BITCOININSIDER by 0x information.The copyright belongs to the author Anonymous, and may not be reproduced without permission