Ethereum began a strong rebound from the $1.425 area against the US Dollar. ETH has risen to $1,500 above the resistance of $1,600.
- Ethereum was well supported at the $1,425 level.
- Now, the price trades above $1,500 as well as the simple 100 hour moving average.
- The hourly chart for ETH/USD showed a breakout above the key bearish trendline with resistance at $1,485 (data feed via Kraken).
- This pair wants to make more gains than the resistances of $1,560 or $1,565
Ethereum price starts to recover
After a sharp decline, Ethereum gained support in the $1.425 area. ETH established a strong base at the $1,425-$1,440 levels, and has recently begun an upward correction.
Clear movement was observed above the $1500 resistance zone. A break was also seen above the key bearish trendline with resistance at $1,485 in the hourly chart for ETH/USD. Even higher than the $1,520 level was the pair.
Clear movement was seen above the 23.6% Fib Retracement level for the key fall from $1,707 swing high and $1,423 lowest. The Ether price now trades above $1500, as is the 100 hourly simple moving mean.
It faces resistance at the $1,560-$1,565 levels. This resistance lies near the 50% Fib Retracement level for the crucial drop from $1.707 swing high, to $1.423 low. Near the $1,600 mark is the next significant resistance.
Source: TradingView.com ETHUSD
Clear moves above $1600 could lead to a test of the $1640 resistance. In the short term, any further gains could open up the possibility of a test at the $1700 resistance.
New Decline in the ETH
Ethereum could fall further if it fails to surpass the $1,565 resistance. The $1,530 area and the 100 hourly simple moving mean provide initial support.
Below $1,490 the price will gain bearish momentum. If the previous scenario is true, then the price might fall to the $1,450 mark. The price could fall further towards $1,425 or its last swing low if it suffers more losses.
Technical indicators
Hourly MACD – MACD for USD/ETH is losing momentum now in bullish territory.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $1,490
Major Resistance Level – $1,565
