Ethereum started a steady recovery above the $1,600 level against the US Dollar. ETH price is now facing a major resistance near $1,700 and $1,700.
- Ethereum formed a decent support base above $1,550 and recovered above $1,650.
- The price is still trading below the $1,700 resistance and the 100 hourly simple moving average.
- There was a break above a key declining channel with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if there is a clear break above $1,700 and $1,720.
Ethereum Price is Facing Resistance
Ethereum remained strong above the $1,500 level and it recovered nicely above $1,600. ETH even settled above the $1,600 level, similar to bitcoin above $50,000.
There was a spike above the $1,700 level, but the bulls fail to gain strength. A high was formed near $1,720 and the price corrected lower. There was a break below the 23.6% Fib retracement level of the upward move from the $1,430 swing low to $1,720 high.
However, ether price remained stable above the $1,575 level. The 50% Fib retracement level of the upward move from the $1,430 swing low to $1,720 high also provided support.
Source: ETHUSD on TradingView.com
The price is rising again above the $1,600 level. There was a break above a key declining channel with resistance near $1,620 on the hourly chart of ETH/USD. The first major resistance is near the $1,700 level. The main resistance is now forming near the $1,720 level and the 100 hourly simple moving average.
If there is a clear break above $1,700 and $1,720, ether price could start a steady increase. The next major resistance on the upside sits near the $1,800 level.
Fresh Dip in ETH?
If Ethereum fails to continue higher above the $1,700 and $1,720 resistance levels, there could be a fresh decline. An initial support on the downside is near the $1,575 level.
There is also a connecting bullish trend line forming with support near $1,575 on the same chart. If there is a downside break below the trend line support, there could be a sharp decline towards $1,500 or even $1,450.
Hourly MACD – The MACD for ETH/USD is struggling to gain momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,575
Major Resistance Level – $1,720