Ethereum began a significant recovery wave starting at $1,500 against US Dollar. ETH rose nearly 10% and could target the $1,700 resistance.
- After the bulls reached the $1,500 mark, Ethereum saw a significant increase.
- The current price trades above $1,600.
- A key bearish trendline is emerging with resistance close to $1,650 (data feed via Kraken).
- For the next term, it must reach $1,650 in order to move higher towards $1.700.
Ethereum Prices Aim Higher
Ethereum suffered a similar decline to bitcoin below the $1600 support. ETH dropped below $1550 before the bulls took a stand.
The $1,500 support seems to have been defended by the bulls. An area near $1,490 was the lowest point and this led to a significant increase in price. The price moved above the resistance levels of $1,550, $1,580. Ether cleared even the 50% Fib level of the pivotal drop from the $1.685 swing high, to the $1.490 low.
The price is currently trading at $1,600 above the simple moving average of 100 hours. It even soared to $1,650. It’s also consolidating close to the 76.4% Fib Retracement level for the key fall from $1,685 swing high, $1,490 low.
The $1,650 level is the immediate resistance. A key bearish trendline is also forming near the $1,650 level on an hourly chart of Ethereum/USD.
Source: TradingView.com ETHUSD
Now, the nearest major resistance level is at $1,675. If there are more gains, it could be possible for the price to move toward the $1700 resistance. If the market moves clear above the $1700 resistance, it could push the price to the $1800 level.
Is there a new decline in ETH?
The $1,650 resistance could be broken and ethereum may begin a downward correction. The $1,610 area is the initial support for the downside.
Near $1,585 is the next support and so is the 100-hourly simple moving average. The downside breakout below the $1585 support could lead to a rapid decline. The above scenario could lead to a sharp decline in ether prices towards $1,540.
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 – $1,585
Major Resistance Level – $1,650