Ethereum extended its rally above the $1,550 resistance against the US Dollar. ETH corrects gains, but declines could find offers near $1,460.
- Ethereum gained bullish momentum and even broke above the $1,550 resistance.
- The price is now trading above $1,500 and the 100 hourly simple moving average.
- A key bullish trend line is forming with support near $1,420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to gain ground if there is a clear move above the $1600 area.
Extended Ethereum Price Rally
Ethereum picked up speed after that there was a clear move above the $1,350 and $1,400 levels. ETH broke through the $1,500 resistance zone to move further into a positive zone.
The price even broke above the $1,550 resistance zone and settled well above the 100 hour simple moving average. Ether price even broke above the $1,600 level and traded at 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 lows of $1,327 to highs of $1,633. However, there are many supports near $1,460. There is also a key uptrend line forming with support near $1,420 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate upside resistance is near the $1,530 level. The first major resistance is seen near the $1,550 area. A clear move above the $1,550 level could push the price higher. The next key barrier is near the $1,620 level, above which the price strengthens and rises towards the $1,700 resistance zone.
Dips Limited in ETH?
If Ethereum fails to break above the $1,550 resistance, it could trigger a downward correction. An initial downside support is seen near the $1,480 area. The next major support is near the $1,460 area.
The 50% Fib retracement level of the recent rally from the $1,327 low to $1,633 low is also near $1,460. Any further loss could even push the Ether price below the trendline support. In the indicated case, the price could drop towards 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 heading towards the 50 level.
Major Support Level – $1,420
Major resistance level – $1,550