Ethereum price rallied above the $1,700 resistance against the US Dollar. ETH might correct lower and test the $1,650 support zone before a fresh increase.
Ethereum price started a major increase above the $1,600 resistance zone. ETH even cleared the key $1,700 resistance zone to move further into a positive zone, similar to bitcoin.
Finally, the price spiked above the $1,740 resistance and traded close to $1,800. A high was formed near $1,784 before there was a downside correction. There was a sharp decline below the $1,700 level. The price tested the $1,665 support zone and traded as low as $1,666.
Ether price is now trading above $1,650 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $1,690 on the hourly chart of ETH/USD.
On the upside, the price is facing resistance near the $1,725 zone. It is near the 50% Fib retracement level of the recent decline from the $1,784 swing high to $1,666 low. The first major resistance is near the $1,740 and $1,750 levels.
The 76.4% Fib retracement level of the recent decline from the $1,784 swing high to $1,666 low is also near $1,750. The next major resistance is near the $1,800 level. A close above the $1,800 resistance zone might start another major increase.
Source: ETHUSD on TradingView.com
In this case, the price may perhaps rise towards the $1,880 resistance level. Any more gains might send the price towards $2,000.
If ethereum fails to clear the $1,740 resistance, it could start another decline. An initial support on the downside is near the $1,690 level and the trend line.
The next major support is near the $1,650 zone. If there is a break below $1,650, the price might drop towards $1,600. Any more losses might call for a test of the $1,550 level.
Technical Indicators
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 – $1,650
Major Resistance Level – $1,740
Aayush is a Senior Forex, Cryptocurrencies, and Financial Market Strategist. He specializes in market strategies and technical analysis and has spent over 15 years as a financial markets contributor and observer. He also founded an IT company and works rigorously in providing high-quality software services. Aayush possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin, and Ethereum markets. Follow him on Twitter @AayushJs.
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