Ethereum Holds Crucial Support, Why Hopes of Fresh Rally Is Intact

The $1,720 USD support for Ethereum was well supported. ETH suffered losses but still faces hurdles in the $1850 zone.

  • Ethereum traded well above the $1720 support area.
  • The 100 hourly moving average and price are now below $1800.
  • A key bearish trend line is emerging with resistance close to $1,840 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • If the pair moves above $1,850 it could start to increase steadily.

Ethereum price remains stable

Ethereum was well-bought above $1,700 and close to the $1.720 support zone. There was an increase in the price of Ethereum, which was close to $1,720.

Price gained momentum for a rise above $1,800 and the 100-hourly simple moving average. The price moved above the 50% Fib level to retrace the decline from the $1.918 swing high and low to $1.725 low.

The $1,850 resistance level was breached and the price moved up. But, bears continued to be active around the $1.865 level. Ether was unable to surpass the 61.8% Fib level of the downmove from $1,918 swing high, to $1,725 lowest.

Ethereum Price

Source: TradingView.com, ETHUSD

On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $1,840. Surprisingly, the first resistance lies near $1,830. Next is the $1,850-$1,865 level. An increase in the price could be initiated by a clear break above $1,865 resistance. The price may rise to $1,920 in the above scenario. Additional gains could lead to a rise towards $2,000.

Is there a new decline in ETH?

The $1,865 resistance could be broken and ethereum may continue its downward slide. The $1,770 area is the initial support for the downside.

Near the $1720 level is the next significant support. If the level is moved below 1,720, it could lead to a sharp decline. 1.680 might provide the next significant support. In the short term, any further losses may push the price to the $1600 mark.

Technical indicators

Minutely MACDNow, the MACD of ETH/USD has gained momentum in the bearish area.

Hourly RSIThe current RSI level for USD/ETH is below 50.

Major Support Level – $1,720

Major Resistance Level – $1,865

Get more Crypto News at CFX Magazine