Ethereum Price Just Reversed and $1,700 is Imminent, Here’s Why
Ethereum remained well bid above the $1,500 level against the US Dollar. ETH is rising and might soon clear the $1,600 resistance zone.
Ethereum tested the $1,500 support zone and started a steady increase.
The price is now trading above $1,560 and the 100 hourly simple moving average.
There was a break above a crucial bearish trend line with resistance near $1,560 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rise steadily if it clears the $1,600 and $1,620 resistance levels.
Ethereum Price Gains Pace
Ethereum remained well bid after it tested the $1,500 support zone. ETH traded as low as $1,501 before it formed a base for a fresh increase.
The bulls were able to push the price above the $1,540 and $1,550 resistance levels. There was a clear move above the 50% Fib retracement level of the downward move from the $1,620 swing high to $1,501 low. There was also a break above a crucial bearish trend line with resistance near $1,560 on the hourly chart of ETH/USD.
Ether price is now trading above $1,560 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,590 level. It is close to the 76.4% Fib retracement level of the downward move from the $1,620 swing high to $1,501 low.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,600 level. A clear break above the $1,600 resistance could set the pace for a decent increase. In the stated case, the price could rise to the $1,650 level. Any more gains might send the price toward the $1,700 resistance zone.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,600 resistance, it could start another decline. An initial support on the downside is near the $1,560 level and the 100 hourly simple moving average.
The first major support is near the $1,540 level, below which ether price may perhaps decline towards the key $1,500 support zone. A downside break below the $1,500 zone might set the pace for a larger increase. In the stated scenario, the price could decline towards the $1,400 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,560
Major Resistance Level – $1,600