Ethereum Consolidate Gains, Why This Support Is The Key


Ethereum extended its rally above the $1,720 level against the US dollar. ETH is now consolidating above the key $1.670 support area.

  • Ethereum remained in positive territory but struggled near the $1,785 resistance area.
  • The price is now trading above $1650 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $1,710 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could initiate a downside correction if there is a close below $1,670 and $1,650.

Ethereum price holds major support

Ethereum remains in positive area above the $1600 level. Even ETH extended the rally above the $1,670 and $1,700 levels.

It rose above $1750 but there was no move to $1800. A top formed near $1,784 and the price started a downside correction. There was a slight movement below the $1,730 and $1,720 levels. Ether fell below the 23.6% Fib retracement level of the upward move from the swing low of $1,355 to the high of $1,784.

Besides, there was a break below the major uptrend line with support near $1,710 on the hourly chart of ETH/USD. The price is now trading above $1650 and the 100 hourly simple moving average.

It also solidifies over Simple moving average per 100 hours. There is an immediate resistance on the upside near the $1,720 level. The first major resistance is near the $1750 area.

Ethereum price

Source: ETHUSD on TradingView.com

The main resistance is now forming near the $1,785 region. A clear move above the $1,785 level could push the price towards $1,850. In the mentioned case, the price may rise towards the resistance area at $1,920.

Breaking the downside in ETH?

If Ethereum fails to rise above the $1750 resistance, it may start a downside correction. There is initial support on the downside near the $1,670 area and the hourly 100 simple moving average.

A clear move below the support level at $1,670 may trigger a move towards the $1,625 level. The next major support is near the 50% Fib retracement level of the upward move from the $1,355 swing low to $1,784 high. Any further losses could push the price to the $1500 support level.

Technical Indicators

MACD per hourETH/USD’s MACD is losing momentum in bullish territory.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Key Support Level – $1,670

Key Resistance Level – $1750



1 thought on “Ethereum Consolidate Gains, Why This Support Is The Key”

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