Monday, January 30, 2023
Home > Analysis > Ethereum Price Holds Ground And Sees Fresh Rally, Bulls Are Not Done Yet

Ethereum Price Holds Ground And Sees Fresh Rally, Bulls Are Not Done Yet

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.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,580

Major Resistance Level – $1,640

Source