Ethereum climbed higher above the $1,500 resistance area against the US Dollar. ETH is consolidating gains and it could rise further towards the $1,650 level.
- Ethereum started a fresh increase above the $1450 and $1500 resistance levels.
- The price is now trading above $1,500 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $1540 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise further unless there is a downside correction below the $1,540 support.
Bullish Ethereum price signals
Ethereum price started a strong increase above the $1400 resistance. ETH managed to clear the $1,450 resistance area to move into positive territory, similar to Bitcoin above $20,000.
The price even climbed above the $1,500 resistance area. A top was formed near $1,584 and the price is now consolidating gains. Ether price is now trading above $1,500 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $1,540 on the hourly chart of ETH/USD.
The current price action is positive, and the price is trading above the 23.6% Fibonacci retracement level of the upward move from the swing low of $1,505 to the high of $1,584.
An immediate resistance is near the $1,585 level. The next major resistance is near the $1,620 level. An upward break above the $1,620 resistance area could set the pace for further gains.
Source: ETHUSD on TradingView.com
In the mentioned case, the price may rise towards the $1700 resistance. Any further gains could send the price towards $1,720 or even $1,800 in the near term.
Dips Limited in ETH?
If Ethereum fails to clear the $1585 resistance, it might start a downside correction. There is initial support on the downside near the $1550 level.
The next major support is near the $1540 level and the trend line. It is close to the 50% Fibonacci retracement level of the upward move from the swing low of $1,505 to the swing high of $1,584. If there is a move below $1,540, the price could test the $1,500 support. Any further losses may require a test of $1420.
Technical indicators
MACD hourly – The MACD for ETH/USD is gaining momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is now above the 50 level.
The main support level is $1,540
The main resistance level is $1,585
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