A Strengthening Case for Upside
- Teresa Bach
- October 27, 2022
- 0 Comments
Ethereum gained pace and broke the $1,500 resistance zone against the US Dollar. ETH is consolidating gains and might eye more upsides above $1,600.
Ethereum is showing positive signs above the $1,500 and $1,520 levels.
The price is now trading above $1,520 and the 100 hourly simple moving average.
There is a major contracting triangle forming with resistance near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rally again if there is a clear move above $1,560 and $1,580.
Ethereum Price Eyes Fresh Increase
Ethereum gained pace after it broke the $1,400 and $1,420 resistance levels. ETH even cleared the $1,500 level and settled above the 100 hourly simple moving average.
The price surged towards the $1,600 level and remained well bid. A high was formed near $1,593 before there was a downside correction. There was a move below the $1,580 level. Ether price even tested the 23.6% Fib retracement level of the upward move from the $1,339 swing low to $1,593 high.
It is now trading above $1,520 and the 100 hourly simple moving average. There is also a major contracting triangle forming with resistance near $1,560 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $1,560 level and the triangle trend line. The first major resistance is near the $1,580 and $1,585 levels. The main barrier is now near the $1,600 zone. A clear upside break above the $1,600 resistance zone could open the doors for a strong increase. In the stated case, the price might climb towards the $1,750 level.
Dips Limited in ETH?
If ethereum fails to climb above the $1,580 resistance, it could start a downside correction. An initial support on the downside is near the $1,525 level and the triangle zone.
The next major support is near the $1,460 and $1,450 levels. It is near the 50% Fib retracement level of the upward move from the $1,339 swing low to $1,593 high. A downside break below the $1,450 zone might start a fresh decline to $1,400 in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,450
Major Resistance Level – $1,580