Ethereum price is currently making an attempt to rally above the $1,620 level against the US Dollar. In order for ETH to establish a strong upward momentum, it needs to settle above $1,620 and $1,650.
Ethereum has been showing signs of recovery as it strives to regain ground above the $1,600 level. The price is currently trading above $1,600 and the 100-hourly Simple Moving Average, which indicates a positive trend. On the hourly chart of ETH/USD provided by Kraken, a key bullish trend line is forming with support near $1,600.
However, in order for Ethereum to experience a substantial increase in value, it needs to overcome a few resistance levels. The first hurdle is near the $1,608 level, or the 50% Fibonacci retracement level of the recent decline from the $1,633 swing high to the $1,583 low. The next major resistance is $1,620, which corresponds to the 76.4% Fibonacci retracement level of the same decline.
If Ethereum manages to break through these resistance levels, it could lead to a significant surge in price. The main obstacle remains at the $1,650 and $1,660 levels. If the bulls are successful in clearing these hurdles, the price could potentially embark on a decent increase towards the $1,720 resistance. Further gains may even open doors for a move towards $1,800.
Related Post
On the other hand, if Ethereum fails to surpass the $1,620 resistance, it may experience another decline. The initial support on the downside is near the $1,600 level and the aforementioned bullish trend line. If there is a downside break below this trend line and the $1,600 support, the price could test the next major support at $1,580. A further downward break below $1,580 might trigger stronger bearish moves and potentially lead to a drop towards the $1,540 support level. In this scenario, a further decline towards the $1,450 level is also possible.
Taking a look at the technical indicators, the MACD for ETH/USD on the hourly chart is losing momentum in the bearish zone. However, the RSI for the same timeframe is now above the 50 level, indicating a potential upward movement in the near future.
In summary, Ethereum is currently attempting to rally above the $1,620 level against the US Dollar. In order to solidify its upward momentum, it needs to overcome resistance at $1,620 and $1,650. Failure to do so could result in another decline towards the $1,540 or even $1,450 level. Traders should closely monitor these critical levels and indicators as they make trading decisions.
