Ethereum Bullish Despite Recent Chop; What Could Propel it to $1,700
Ethereum is consolidating above $1,550 against the US Dollar. ETH could rally if there is a clear move above the $1,620 resistance zone.
Ethereum is trading in a positive zone above the $1,520 and $1,500 support levels.
The price is now trading above $1,550 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start another increase if it stays above the $1,550 and $1,530 support levels.
Ethereum Price Eyes Fresh Increase
Ethereum made an attempt to gain strength above the $1,620 resistance and the 100 hourly simple moving average. However, ETH failed to remain stable above $1,620.
A high was formed near $1,648 and the price trimmed gains. There was a drop below the $1,580 level and $1,550. A low is formed near $1,535 and the price is now rising. There was a move above the $1,550 resistance. Ether price cleared the 23.6% Fib retracement level of the recent decline from the $1,648 swing high to $1,535 low.
It is now trading above $1,550 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $1,560 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $1,600 level. It is near the 50% Fib retracement level of the recent decline from the $1,648 swing high to $1,535 low. The next major resistance is now forming near the $1,620 level.
Source: ETHUSD on TradingView.com
A clear move above the $1,650 level might send the price towards $1,650 resistance. Any more gains may perhaps open the doors for a move towards the $1,700 resistance in the near term.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,600 resistance, it could start another decline. An initial support on the downside is near the $1,560 zone and the 100 hourly SMA.
The next major support is near $1,535, below which ether price might revisit $1,500. Any more losses may perhaps send the price towards the $1,420 zone.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,535
Major Resistance Level – $1,600