Ethereum formed a base near $1,740 and started a rally against the US Dollar. ETH is now facing significant resistance near the $1,900 region.
- Ethereum started a recovery wave above the $1,800 and $1,820 levels.
- The price is now trading above $1,820 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must cross the $1900 and $120 resistance levels to continue rising.
Ethereum price eyes broken upside down
Ethereum Extended retreat Below the $1800 level. However, the bulls were active above the $1,700 level. The price consolidated near the $1,740 level before starting a nice upward movement.
There was a clear move above the $1800 resistance area. Ether price has breached the 50% Fib retracement level of the downside move from the $1,910 swing high to $1,700. Besides, there was a break above the major downtrend line with resistance near $1,820 on the hourly chart of ETH/USD.
The price is now trading above $1,820 and 100-hour simple moving average. It is also consolidating above the 76.4% Fib retracement level of the downward move from the $1,910 swing high to $1,700.
Source: ETHUSD on TradingView.com
On the upside, there is an initial resistance near the $1,900 level. The next major resistance is near the $1,920 level. A correct break above the $1,920 resistance could lead to a suitable rally. In the mentioned case, the price of Ether could rise towards the $2000 resistance area. Any further gains could lead it towards the key resistance area at $2,085.
A new drop in ETH?
If Ethereum fails to continue rising above the resistance at $1,920, it may start a new decline. There is initial support on the downside near the $1,840 region.
The next major support is near the $1,820 level and the 100 hourly simple moving average. A break-down below the $1,820 level could lead to another sharp decline. In the mentioned case, the price could revisit the $1,720 support area in the near term. The next major support is near $1,700.
MACD per hour – ETH/USD’s MACD is gaining momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Key Support Level – $1,820
Key Resistance Level – $1,920