Ethereum’s Price on the Rise, Breaking Resistance Levels
The $1,600 support zone has provided Ethereum with a solid foundation, allowing the price to gradually increase. Currently, ETH is trading near $1,630, aligned with the 100-hourly Simple Moving Average. In a positive development, two bearish trend lines near $1,620 and $1,630 were broken, as confirmed by the ETH/USD hourly chart on Kraken.
To trigger a steady increase, it is crucial for the pair to surpass the $1,650 resistance level and close above it. As Ethereum forms a base, it is currently attempting a recovery wave above $1,620, much like Bitcoin. In fact, the pair has retested the 23.6% Fibonacci retracement level of the main decline from the $1,750 swing high to the $1,600 low.
As Ether hovers around $1,630 and the 100-hourly Simple Moving Average, it may encounter resistance at the $1,645 level. Further up, the next obstacle lies near $1,660, and surpassing it could propel the price towards $1,675. The 50% Fibonacci retracement level of the main decline from the $1,750 swing high to the $1,600 low is also located near $1,675, followed by a major barrier at $1,700.
Source: ETHUSD on TradingView.com
Possible Decline if Resistance Fails to be Overcome
However, if Ethereum fails to clear the $1,660 resistance level, it may experience another decline. The initial downside support lies at $1,620, with the first key support close to $1,600. A breakdown below $1,600 could result in increased selling pressure.
The next significant support is situated around $1,580. A potential decline below $1,580 would bring the price back to the key support level at $1,540. In a worst-case scenario, the price might even tumble further towards $1,480 or $1,440.
Technical Indicators Show Positive Momentum
Hourly MACD: The MACD for ETH/USD is gradually gaining momentum in the bullish zone.
Hourly RSI: The RSI for ETH/USD has now exceeded the 50 level.
Major Support Level: $1,600
Major Resistance Level: $1,660
Hot Take
Ethereum’s price has shown resilience by holding above key support levels, paving the way for a potential recovery. Breaking bearish trend lines and surpassing resistance levels are positive signs for ETH’s upward movement. However, failure to overcome resistance could lead to a decline. Monitoring key support levels and technical indicators will be crucial in assessing Ethereum’s future price movements.
By
By
By
By