The Ethereum price was well above $1,550 against the US Dollar. If it breaks the $1,625 resistance area, ETH may see a new increase.
- Ethereum remains stable, and positive signals are being seen above the $1550 support zone.
- The price traded at $1,560 above the simple moving average of 100 hours.
- On the hourly chart for ETH/USD, there is a significant contracting triangle with resistance at $1620 (data feed via Kraken).
- If the pair clears $1,620 or $1,625, it could begin a new increase.
Ethereum price sees a fresh increase
After forming a near-term high at $1,665, Ethereum began a downward correction. ETH dropped below the $1620 and $1600 levels.
A move below 50% Fib level was seen in the key wave, which ran from the $1.485 swing low down to the $1.665 high. The Ether price surged to below the $1.580 level, and even the 100 hourly simple moving mean. The $1,550 support level was where the bulls were most active.
Bids were close to the 61.8% Fib level for the key wave that ran from $1,485 low to $1.665 high. It is currently trading at $1,560 above the 100-hourly simple moving average.
A major contracting triangle is also emerging with resistance close to $1,620 in the hourly chart of Ethereum/USD. The $1,620 and triangle trend line zones are the immediate support for the upside. Near the $1,640- and $1,650 levels is the first significant resistance. Above which, the price may gain bullish momentum.
Source: TradingView.com, ETHUSD
If the case is true, then the price might even cross the $1700 threshold. Price gains could push the price towards the $1800 resistance zone.
Dips Limited in Ethereum?
It could fall further if it fails to rise above $1,625 resistance. The $1,575 and 100 hourly simple moving mean levels provide initial support.
It is located near $1,550 and the triangle lower trendline. This will be the initial major support. Selling pressure could increase if the downside breaks below $1,550. If this is the case, the ether price could fall towards the $1500 support zone within the next few months.
Hourly MACD – MACD for USD/ETH is losing momentum now in the bearish area.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $1,550
Major Resistance Level – $1,625