Positive signs are being seen above the $1550 support zone for Ethereum against the US dollar. ETH may start a new rally if it fails to break the $1,550 support area.
- Ethereum consolidating, and showing positive signs over the $1.550 support zone.
- The current price trades above $1,550 as well as the simple 100-hour moving average.
- On the hourly chart for ETH/USD, there is an important contracting triangle with resistance at $1,600 (data feed via Kraken).
- A new wave could be initiated if the pair makes it above $1,600.
Ethereum price supported for gains
After it began a downtrend from $1,665 the Ethereum price remained high. ETH fell below $1,580, however, the bulls were still active at the $1,550 mark.
Price tested key Fib retracement levels of main rise from $1,485 swing high to $1,665 low at 61.8%. Bulls protected more losses below $1,550 support and the 100-hourly simple moving average. Now, it has consolidated and is above $1,580.
On the hourly chart for ETH/USD, there is a contracting triangle that forms with resistance at $1,600. A triangle trend line zone and near $1,600 provide immediate resistance.
Source: TradingView.com ETHUSD
First, resistance lies near $1,620 or $1,625 levels. If the price breaks above these levels, it could retrace the $1.665 high. An obvious break above the $1,665 level may open up new opportunities for rallies. The price may even reach the $1,750 mark in the above scenario. The price could reach the $1,800 resistance level with any further gains.
Is there a Downside in Ethereum?
If the resistance of $1,600 is not broken, ethereum could slow move lower. The $1,570 support level is the first resistance. It also includes the 100 hourly simple moving mean.
It is located near $1,550. If the price falls below $1,550, it could be necessary to test the 76% Fib Retracement level that represents the major increase in the amount from $1,485 high to $1,665 low. If the market loses more, it could send the price to the $1.485 support zone.
Hourly MACD – MACD of ETH/USD has lost momentum and is currently in the bearish zone.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $1,550
Major Resistance Level – $1,600