Ethereum Rally Takes Breather But Dips Remain Attractive
Ethereum extended its rally above the $1,550 resistance against the US Dollar. ETH is correcting gains but dips might find bids near $1,460.
Ethereum gained bullish momentum and even surpassed the $1,550 resistance.
The price is now trading above $1,500 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $1,420 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to gain pace if there is a clear move above the $1,600 zone.
Ethereum Price Extended Rally
Ethereum gained pace after there was a clear move above the $1,350 and $1,400 levels. ETH cleared the $1,500 resistance zone to move further into a positive zone.
The price even rallied above the $1,550 resistance zone and settled well above the 100 hourly simple moving average. Ether price even spiked above the $1,600 level and traded to a new multi-week high at $1,633. It is now correcting gains below the $1,600 level.
There was a move below the 23.6% Fib retracement level of the recent rally from the $1,327 swing low to $1,633 high. However, there are many supports near $1,460. There is also a key bullish trend line forming with support near $1,420 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $1,530 level. The first major resistance is near the $1,550 zone. A clear move above the $1,550 level could send the price higher. The next key barrier is near the $1,620 level, above which the price gain strength and rise towards the $1,700 resistance zone.
Dips Limited in ETH?
If ethereum fails to rise above the $1,550 resistance, it could start a downside correction. An initial support on the downside is near the $1,480 zone. The next major support is near the $1,460 zone.
The 50% Fib retracement level of the recent rally from the $1,327 swing low to $1,633 high is also near $1,460. Any more losses might even push ether price below the trend line support. In the stated case, the price could drop toward the $1,360 level or the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is moving towards the 50 level.
Major Support Level – $1,420
Major Resistance Level – $1,550