Ethereum struggled to clear the $1,600 resistance and corrected lower against the US Dollar. ETH price is likely to remain stable above $1,450 and it could again climb towards $1,600.
- Ethereum corrected lower from $1,600 and tested the $1,450 support zone.
- The price is now trading just above $1,500 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher towards $1,600 as long as it is above $1,450.
Ethereum Price is Holding Gains
Ethereum climbed higher above the $1,550 resistance and tested the $1,600 zone. ETH price topped near the $1,596 level before it started a downside correction.
There was a break below the $1,550 and $1,525 support levels. The price even traded below the 23.6% Fib retracement level of the upward move from the $1,296 swing low to $1,596 swing high. Finally, there was a spike below the $1,500 level and the 100 hourly simple moving average.
Ether tested the $1,450 support zone. It also remained stable above the 50% Fib retracement level of the upward move from the $1,296 swing low to $1,596 swing high.
Source: ETHUSD on TradingView.com
The price is now recovering and trading nicely above the $1,500 level. There is also a key bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $1,550 level.
The main resistance is still near the $1,600 zone. A successful close above the $1,600 level is must for upside continuation in the coming sessions. The next key resistance is near the $1,680 level.
Fresh Drop in ETH?
If Ethereum fails to continue higher above the $1,550 and $1,600 resistance levels, it could resume its decline. An initial support on the downside is near the $1,500 level.
The first major support is near the $1,480 zone and the trend line. A downside break below the trend line support and a follow up move below the $1,450 level could open the doors for a sustained downward move towards the $1,400 and $1,350 levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
Major Support Level – $1,480
Major Resistance Level – $1,600
