Ethereum is showing positive signs above the $1,550 zone against the US Dollar. ETH could start a fresh rally unless it breaks the $1,550 support zone.
- Ethereum is consolidating and is showing positive signs above the $1,550 support zone.
- The price is now trading above $1,550 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $1,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh surge if it clears the $1,600 and $1,620 levels.
Ethereum Price Remains Supported For Gains
Ethereum remained well bid after it started a downside correction from the $1,665 zone. ETH declined below the $1,580 level, but the bulls were active near the $1,550 level.
The price tested the key 61.8% Fib retracement level of the main increase from the $1,485 swing low to $1,665 high. The bulls defended more losses below the $1,550 support zone and the 100 hourly simple moving average. It is now back above the $1,580 level and is consolidating.
There is also a key contracting triangle forming with resistance near $1,600 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,600 level and the triangle trend line zone.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,620 and $1,625 levels, above which the price could revisit the $1,665 high. A clear break above $1,665 level could set the stage for a fresh rally. In the stated case, the price could even test the $1,750 level. Any more gains might send the price toward the $1,800 resistance zone.
Downside Break in ETH?
If ethereum fails to climb above the $1,600 resistance, it could slowly move lower. An initial support on the downside is near the $1,570 level and the 100 hourly simple moving average.
The first major support is near the $1,550 level. A downside break below the $1,550 zone might call for a test of the 76% Fib retracement level of the main increase from the $1,485 swing low to $1,665 high. Any more losses may perhaps send the price towards the $1,485 support zone in the near term.
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 Level – $1,600