Key Highlights
- ETH price is trading in a range below the $715 resistance area against the US Dollar.
- There is a major contracting triangle forming with current support at $665 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair might soon make the next move and either break $715 or trade below $665.
Ethereum price is consolidating in a range against the US Dollar and Bitcoin. ETH/USD may soon attempt the next upside break above $715.
Ethereum Price Resistance
After a nasty decline below the $500 level, ETH price started an upside recovery against the US Dollar. The price formed a base above $475 and started correcting higher. It traded above the 50% Fib retracement level of the last major drop from the $865 high to $475 low. It traded with a positive bias and even managed to settle above the $600 level.
However, there was no proper daily close above the $700 level. The price also struggled to move above the 100 simple moving average and $740 on the 4-hours chart. On the positive side, the pair almost tested the 76.4% Fib retracement level of the last major drop from the $865 high to $475 low. Therefore, there are chances of ETH resuming its upside wave sooner or later above the $740 level. At the moment, it seems like there is a major contracting triangle forming with current support at $665 on the 4-hours chart of ETH/USD.
The pair might make the next move either above the $715 level or below the $665 support. A proper 4-hour close above $715 and 100 SMA could ignite a sharp upside move in ETH/USD. On the flip side, a break below the $665 support may call for declines toward $600 and $560.
4-hours MACD – The MACD is moving to and fro in the bullish zone.
4-hours RSI – The RSI is currently just below the 50 level with minor bearish signs.
Major Support Level – $665
Major Resistance Level – $715
Charts courtesy – SimpleFX
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Source: newsBTC