Ethereum remained well bid above the $1,550 zone against the US Dollar. ETH could start a fresh increase if it clears the $1,625 resistance zone.
- Ethereum is stable and is showing positive signs above the $1,550 support zone.
- The price is now trading above $1,560 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it clears the $1,620 and $1,625 levels.
Ethereum Price Eyes Fresh Increase
Ethereum started a downside correction after it formed a short-term top near the $1,665 level. ETH declined below the $1,620 and $1,600 levels.
There was a move below the 50% Fib retracement level of the key wave from the $1,485 swing low to $1,665 high. Ether price even spiked below the $1,580 level and the 100 hourly simple moving average. However, the bulls were active near the $1,550 support zone.
It found bids near the 61.8% Fib retracement level of the key wave from the $1,485 swing low to $1,665 high. The price is now trading above $1,560 and the 100 hourly simple moving average.
There is also a major contracting triangle forming with resistance near $1,620 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,620 level and the triangle trend line zone. The first major resistance is near the $1,640 and $1,650 levels, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, the price could even test the $1,700 level. Any more gains might send the price toward the $1,800 resistance zone.
Dips Limited in ETH?
If ethereum fails to climb above the $1,625 resistance, it could continue to move down. An initial support on the downside is near the $1,575 level and the 100 hourly simple moving average.
The first major support is near the $1,550 level and the triangle lower trend line. A downside break below the $1,550 zone might increase selling pressure. In the stated case, ether price may perhaps decline towards the $1,500 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,550
Major Resistance Level – $1,625