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TA: Ethereum Gains Momentum, A Strengthening Case For More Upsides

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Ethereum started a fresh increase above the $1,600 resistance against the US Dollar. ETH is gaining pace and might rise further towards the $1,650 level.

  • Ethereum remained well supported above the $1,480 zone.
  • The price is now trading above $1,550 and the 100 hourly simple moving average.
  • There is a key rising channel forming with support near $1,510 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is eyeing more gains above the $1,620 and $1,625 resistance levels.
Ethereum Price Gains Pace

Ethereum attempted an upside break above the $1,605 level, but struggled. There was a sharp bearish reaction below the $1,560 and $1,550 levels.

Ether price dipped below the $1,520 level and the 100 hourly simple moving average. However, the bulls were active near the $1,500 and $1,480 levels. A low was formed near $1,473 and the price is now rising. There was a clear move above $1,550 and the 100 hourly simple moving average.

The price rallied above the 61.8% Fib retracement level of the recent decline from the $1,605 swing high to $1,473 low. It is now consolidating near the $1,600 zone. There is also a key rising channel forming with support near $1,510 on the hourly chart of ETH/USD

It is facing resistance near the $1,620 and $1,635 levels.  The stated resistance is near the 1.236 Fib extension level of the recent decline from the $1,605 swing high to $1,473 low. The next major resistance is now forming near the $1,650 level.

Source: ETHUSD on TradingView.com

A clear move above the $1,650 level might send the price towards $1,700 resistance. Any more gains may perhaps open the doors for a test of the $1,750 resistance in the near term.

Fresh Decline in ETH?

If ethereum fails to rise above the $1,620 resistance, it could start another decline. An initial support on the downside is near the $1,560 zone.

The next major support is near $1,540 and the 100 hourly simple moving average, below which ether price gain bearish momentum. In the stated case, the price may perhaps decline towards the $1,520 level. Any more losses may perhaps send the price towards the $1,480 zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,540

Major Resistance Level – $1,635


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