Ethereum gained momentum and broke through the $1,500 resistance zone to the US Dollar. ETH consolidating its gains might offer more upsides beyond $1,600.
- Positive signs are being seen in Ethereum above and beyond the $1,500-$1,520 levels.
- Today, the price traded above $1520. The 100-hourly simple moving average is also in place.
- A major contracting triangle is emerging with resistance close to $1,560 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- If the pair moves above $1,560 or $1,580, it could rally once again.
Ethereum price sees a fresh increase
Ethereum’s momentum increased after breaking the $1,400 resistance and $1,420 resistance levels. ETH reached $1,500 levels and settled higher than the simple 100-hour moving average.
Price soared to $1,600 and then remained high. Before there was any downside correction, a high of $1,593 was reached. A move below $1,580 was observed. Even the 23.6% Fib level of the upward swing from the $1.339 swing low down to the $1.593 high reached Ether.
The price is currently trading at $1,520 above the hourly simple moving median of 100 hours. On the hourly chart for ETH/USD, there is a significant contracting triangle with resistance at $1,560.
Source: TradingView.com, ETHUSD
Near the $1,560 and triangle trend lines is immediate resistance to the upside. Near the $1,580 or $1,585 levels is the first significant resistance. The $1,600 resistance zone is the main obstacle. The door to a substantial increase could be opened by a clear upward break of the $1,600 resistance level. The price could rise to $1,750 in the above scenario.
Dips Limited in Ethereum?
The downside correction could be initiated if the resistance of $1,580 is not broken. The triangle zone and near the $1.525 resistance provide initial support.
Near the $1,460 or $1,450 levels is the next significant support. The 50% Fib Retracement level is the nearest support for the upward movement from $1,339 low to $1,593 high. If the downside breaks below the $1450 zone, it could start a decline towards $1,400.
Technical indicators
Minutely MACD – MACD for USD/ETH is losing momentum now in bullish territory.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $1,450
Major Resistance Level – $1,580
