Key Highlights
- ETH price managed to gain traction against the US Dollar, and was seen trading above $51.50.
- There is a new connecting bullish trend line with support at $49.80 formed on the hourly chart (ETH/USD, data feed via SimpleFX).
- The price may continue to trade higher, and we may even see more upsides above $52.00.
Ethereum price remained well supported against the US Dollar and Bitcoin, and the recent move suggests more gains in ETH/USD in the near term.
Ethereum Price Upside Move
Yesterday, we saw an upside move in ETH price, as it moved above the $49.50 resistance against the US Dollar. The upside move was positive, as the price was able to gain strength and move higher. There was a break above the all-important $50.00 handle as well. It opened the doors for more gains, as the price was able to trade above $52.00. The price is now trading above the $52.00 level and recently traded as high as $52.42.
The best part was a break above the 1.236 extension of the last decline from the $50.99 high to $47.10 low. At the moment, the price is looking to correct lower. An initial support is around the 23.6% Fib retracement level of the last wave from the $47.10 low to $52.42 high. There is also a new connecting bullish trend line with support at $49.80 formed on the hourly chart of ETH/USD. The trend line support holds a lot of importance around $50.00.
It also coincides with the 50% Fib retracement level of the last wave from the $47.10 low to $52.42 high. So, if the price corrects lower, it may find buyers near $51.50 or $50.50 for another upside move.
Hourly MACD – The MACD is currently moving nicely in the bullish zone.
Hourly RSI – The RSI is in the overbought levels, and may move down a few points.
Major Support Level – $51.50
Major Resistance Level – $52.40
Charts courtesy – SimpleFX
