Ethereum rallied above $1,550 against the US dollar. ETH has been correcting its gains, but it could see dips close to $1,460.
- Ethereum saw bullish momentum, and it even passed the $1550 resistance.
- Now, the price trades above $1,500 as well as the simple 100-hour moving average.
- A key bullish trendline is emerging with support at $1,420 (data feed via Kraken).
- A clear move over the $1,600 mark could allow for continued growth.
Extended rally for Ethereum price
After a clear rise above $1,350 and $1.400, Ethereum picked up speed. ETH has cleared the $1500 resistance zone in order to continue its climb into a more positive zone.
It even climbed above the $1550 resistance zone, and settled just above the 100 hourly simple movement average. The Ether price traded at a multi-week peak of $1,600 and reached a record $1,633. Now, it is correcting losses below the $1600 level.
Below the 23.6% Fib level of the rally, which took the market from $1,327 swing lows to $1,633 highs, there was a decline. There are however many support levels near $1,460. On the hourly chart for ETH/USD, there is a bullish trend line that forms with support at $1,420.
Source: TradingView.com ETHUSD
The $1,530 level is the nearest resistance for the upside. It is located near the $1550 area. Price could move higher if the level is breached. Near the $1620 level is the next barrier. If the price breaks through this threshold, it will likely rise to the $1700 resistance zone.
Dips Limited in Ethereum?
The downside correction could be initiated if the resistance of $1,550 is not broken. Near the $1,480 support zone is an initial support. Near the $1,460 area is the next significant support.
A further 50% Fib level is near $1460. A further loss could push the price lower than the trendline support. If this happens, then the price of the stock could fall to the $1360 level, or the 100 hourly simple movement average.
Technical indicators
Hourly MACD – MACD is currently losing momentum for the bullish area of ETH/USD.
Hourly RSI – The RSI is moving toward the 50 level for ETH/USD.
Major Support Level – $1,420
Major Resistance Level – $1,550
