Ethereum is showing positive signs above $1,720 against the US Dollar. ETH could start a strong increase if there is a clear move above the resistance at $1,850.
- Ethereum remains well supported above the $1,720 support area.
- The price is now trading below $1,820 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,815/hour on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may start a strong increase if there is a clear movement above the resistance area at $1,850.
Ethereum price holds support
Ethereum remains well supported above $1720 support area. A base was formed near $1,725 and there was a fresh increase.
The price rose above the $1,800 resistance level and Simple moving average per 100 hours. However, the price struggled to rise above the $1,850 level. A top formed near $1,875 and the price corrected the gains. It is now consolidating above the $1,770 level.
The last bottom formed near $1,753 before the price climbed above $1,780. Ether price is now trading below $1,820 and the 100 hourly simple moving average.
On the upside, there is an initial resistance near the $1,810 level. There is also a major bearish trend line forming with resistance near $1,815 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $1,875 high swing high to $1,753.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,830 level. It is near the 61.8% Fib retracement level of the recent decline from the $1,875 high to $1,753 low. The main resistance is near the $1,850 level. A clear move above the resistance at $1,850 may start a strong rally.
A new drop in ETH?
If Ethereum fails to rise above the resistance level at $1,850, it may continue to decline. There is initial support on the downside near the $1,770 region.
The next major support is near the $1,720 level. A close below the $1,720 support level could increase selling pressure. In the mentioned case, the price could drop towards the $1,650 support area in the near term.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now near the 50 level.
Key Support Level – $1,720
Key Resistance Level – $1,850