Ethereum price started a fresh increase from $1,600 against the US Dollar. ETH is rising, but it must clear $1,720 to start a fresh rally in the near term.
- Ethereum is now rising from the key $1,600 support zone.
- The price is trading just above $1,650 and the 100 hourly simple moving average.
- There was a break above a major declining channel with resistance near $1,635 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if it clears $1,700 and $1,720 in the near term.
Ethereum Price Regains Strength
Ethereum price extended its downside correction below the $1,640 support. ETH even declined below the $1,620 level and tested the $1,600 level. A low was formed near $1,596 and the price started a fresh increase, similar to bitcoin.
There was a clear move above the $1,635 and $1,640 resistance levels. Besides, there was a break above a major declining channel with resistance near $1,635 on the hourly chart of ETH/USD.
Ether price cleared the 50% Fib retracement level of the downward move from the $1,720 swing high to $1,596 low. It is now trading just above $1,650 and the 100 hourly simple moving average.
On the upside, the price is facing resistance near the $1,670 level. It is near the 61.8% Fib retracement level of the downward move from the $1,720 swing high to $1,596 low. The first major resistance is near the $1,700 zone. The next major resistance is near the $1,720 zone.
Source: ETHUSD on TradingView.com
A clear move above the $1,720 resistance zone start a steady increase towards the $1,780 level. Any more gains might open the doors for a move towards the $1,850 level.
Fresh Decline in ETH?
If ethereum fails to clear the $1,700 resistance, it could start another downside correction. An initial support on the downside is near the $1,650 level and the 100 hourly SMA.
The next major support is near the $1,620 zone. If there is a break below $1,620, the price might continue to drop towards the $1,600 support. Any more losses might call for a test of the $1,535 level.
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
