Ethereum continued to bid well above the $1,720 support level against the US Dollar. ETH recovered losses, but still faces hurdles near the $1,850 area.
- Ethereum bid remains well above the $1,720 support area.
- The price is now trading below $1800 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,840 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may start a steady increase if there is a clear movement above the resistance area at $1,850.
Ethereum price remains stable
Ethereum supply has remained well above $1,700 and near $1720 support area. A base was formed near $1,720 and there was a fresh increase.
The price has gained pace to move above the $1,800 level and 100-hour simple moving average. There was a clear move above the 50% Fib retracement level of the downside move from the $1.918 swing high to $1725.
The price rose above the $1,850 resistance area. However, the bears remained active near the $1,865 level. Ether failed to surpass the 61.8% Fib retracement level of the downside move from the $1.918 swing high to $1,725.
Source: ETHUSD on TradingView.com
There is also a major bearish trend line forming with resistance near $1,840 on the hourly chart of ETH/USD. On the upside, there is an initial resistance near the $1,830 level. The next major resistance is near the $1,850 and $1,865 levels. A clear move above the resistance at $1,865 may start a new rally. In the said case, the price could look back at $1,920. Any further gains could set the pace for a move towards $2000.
A new drop in ETH?
If Ethereum fails to rise above the resistance level at $1,865, 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 clear move below the $1,720 level could trigger a significant decline. The next major support might be $1,680. Any further losses could push the price towards the $1600 level in the near term.
MACD per hour – ETH/USD’s MACD is gaining momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key Support Level – $1,720
Key Resistance Level – $1,865