Ethereum price is still holding gains above $1,750 against the US Dollar. ETH could start a major rally if there is a close above the $1,850 resistance zone.
- Ethereum is slowly moving higher towards the $1,840 resistance zone.
- The price is trading above $1,750 and the 100 hourly simple moving average.
- There was a break below a major bearish trend line with resistance near $1,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh rally if there is a clear move above the $1,850 resistance.
Ethereum Price Eyes Fresh Increase
Ethereum price started a downside correction from the $1,850 resistance zone. ETH corrected lower and traded below the $1,800 level but the bulls remained active, similar to bitcoin.
A low was formed near $1,720 and the price is now rising. There was a break below a major bearish trend line with resistance near $1,740 on the hourly chart of ETH/USD. The pair revisited the $1,840 resistance zone and traded as high as $1,837.
The price is now consolidating gains and trading below the 23.6% Fib retracement level of the upward move from the $1,727 swing low to $1,837 high.
Ether price is now trading above $1,750 and the 100 hourly simple moving average. It is also above the 50% Fib retracement level of the upward move from the $1,727 swing low to $1,837 high. On the upside, the price is facing resistance near the $1,820 zone.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,840 zone. The first major resistance is near $1,850. A close above the $1,850 resistance zone might start another major increase. In this case, the price may perhaps rise towards the $1,920 resistance level. Any more gains might send the price towards $2,000.
Dips Limited in ETH?
If ethereum fails to clear the $1,850 resistance, it could start another downside correction. An initial support on the downside is near the $1,780 level.
The next major support is near the $1,765 zone and the 100 hourly simple moving average. If there is a break below $1,765, the price might drop towards $1,695. Any more losses might call for a test of the $1,650 level.
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 – $1,765
Major Resistance Level – $1,850