TA: Why Ethereum Close above $1,600 Could Stage A Strong Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum started a steady increase above $1,450 and $1,500 against the US Dollar. ETH price is showing positive signs, but it must settle above $1,600 for upside continuation.

Ethereum started a decent recovery above the $1,450 resistance zone.
The price is now trading well above $1,500 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $1,440 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is now facing a strong resistance near the $1,600 pivot level.

Ethereum Price is Recovering Nicely

Ethereum extended its decline towards the $1,300 level before correcting higher. ETH price formed a base above the $1,350 and recently climbed above the $1,400 resistance zone.

There was also a break above a key bearish trend line with resistance near $1,440 on the hourly chart of ETH/USD. It opened the doors for more gains above the $1,450 and $1,500 levels. Ether price even climbed above the $1,550 level and settled above the 100 hourly simple moving average.

Finally, there was a spike above $1,600 and the price traded as high as $1,618. It is currently consolidating gains above the $1,550 level. An initial support is near the 23.6% Fib retracement level of the recent wave from the $1,296 swing low to $1,618 high.

Source: ETHUSD on TradingView.com

On the upside, the price is facing a strong resistance near the $1,600 and $1,615 levels. A daily close above the $1,600 level could open the doors for a fresh rally. In the stated case, the price might easily rise towards the $1,700 level.

Fresh Drop in ETH?

If Ethereum fails to continue higher above the $1,600 and $1,615 resistance levels, it could start a fresh decline. An initial support on the downside is near the $1,550 level.

The first major support is near the $1,500 zone and the 100 hourly simple moving average. The next major support is near the $1,450 level. It is close to the 50% Fib retracement level of the recent wave from the $1,296 swing low to $1,618 high. Any more losses might call for a test of the $1,420 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

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

Major Support Level – $1,500

Major Resistance Level – $1,600

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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