Ethereum corrected lower sharply and tested $1,500 against the US Dollar. ETH started a fresh increase and is now trading above the $1,600 pivot level.
- Ethereum is gaining pace above the $1,580 and $1,600 levels.
- The price is now trading above $1,600 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,615 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise further if it stays above the $1,600 and $1,580 support levels.
Ethereum Price Restarts Increase
Ethereum price started a sharp downside correction below the $1,600 level. ETH even declined below the $1,550 support zone and the 100 hourly simple moving average.
However, the bulls were active near the $1,520 support zone. A low as formed near $1,518 and the price started a sharp increase, similar to bitcoin. There was a steady increase above the $1,550 and $1,580 resistance levels. The bulls even pushed it above the $1,600 level.
Besides, there was a break above a major bearish trend line with resistance near $1,615 on the hourly chart of ETH/USD. Ether price is now trading above $1,600 and the 100 hourly simple moving average.
A high is formed near $1,639 and the price is consolidating gains. It is trading near the 23.6% Fib retracement level of the upward move from the $1,518 swing low to $1,639 high. An immediate resistance is near the $1,640 level. The next major resistance is near the $1,665 level.
Source: ETHUSD on TradingView.com
An upside break above the $1,665 resistance zone could start a fresh rally. In the stated case, the price may perhaps rise towards the $1,720 resistance.
Dips Limited in ETH?
If ethereum fails to clear the $1,640 resistance, it could start another downside correction. An initial support on the downside is near the $1,610 level or the broken trend line.
The next major support is near the $1,580 level or the 50% Fib retracement level of the upward move from the $1,518 swing low to $1,639 high. If there is a break below $1,580, the price might drop towards the $1,550 support. Any more losses might call for a retest of the $1,520 zone.
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 – $1,580
Major Resistance Level – $1,640