Ethereum started a strong increase above the $1,600 level against the US Dollar. ETH is up over 15% and might even clear the $1,700 resistance zone.
- Ethereum started a major increase above the $1,550 and $1,600 levels.
- The price is now trading above $1,600 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $1,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a clear move above the $1,675 level.
Ethereum Price Jumps Above $1,600
Ethereum formed a base above the $1,400 level and started a major increase. ETH was able to clear a few key hurdles near the $1,500 and $1,550 levels.
The price jumped over 15% and even surpassed the $1,600 level. There was a break above a key bearish trend line with resistance near $1,450 on the hourly chart of ETH/USD. The pair climbed sharply and surpassed the 76.4% Fib retracement level of the downward move from the $1,663 swing high to $1,357 low.
It even broke the $1,650 level and now trading near the $1,660 zone. Ether price is now trading above $1,600 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,675 level. The first major resistance is near the $1,700 zone.
Source: ETHUSD on TradingView.com
The main resistance is now forming near the $1,735 zone. It is near the 1.236 Fib extension level of the downward move from the $1,663 swing high to $1,357 low. A clear move above the $1,735 level could push the price further higher. In the stated case, the price may perhaps rise towards the $1,800 resistance zone.
Dips Supported in ETH?
If ethereum fails to rise above the $1,675 resistance, it could start a downside correction. An initial support on the downside is near the $1,620 zone.
A clear move below the $1,620 support might spark a move towards the $1,580 level. Any more losses might even push the price to the $1,510 support or even the 100 hourly simple moving average in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now in the overbought zone.
Major Support Level – $1,620
Major Resistance Level – $1,675
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Author: Aayush Jindal