Ethereum began a sharp surge above the USD 1,550 and USD 1,600 resistance levels against the US dollar. ETH price is likely to continue to rise towards the USD 1,700 and USD 1,720 resistance levels.
- ETH price found support near $ 1,550 and recently started a new spike against the US dollar.
- The price is well over $ 1,600 and the simple moving average of 100 (4 hours).
- A major bullish trendline is forming on the ETH / USD 4-hour chart (data feed via Kraken) with support near USD 1,550.
- The pair is likely to continue rising towards the $ 1,700 and $ 1,720 resistance levels.
The Ethereum turns green
Over the past week, Bitcoin and Ethereum have revised down below $ 48,000 and $ 1,550, respectively, against the US dollar. ETH even traded below the USD 1,500 support zone and was well below the simple moving average of 100 (4 hours).
It traded as low as $ 1,444 before correcting higher. The bulls pushed the price convincingly above the USD 1,500 and USD 1,550 resistance levels. The ETH / USD 4-hour chart also broke above a bearish bearish trendline at USD 1,540.
Source: ETHUSD on TradingView.com
Ether price rose steadily, erasing the 76.4% fib retracement level of the downward move from the high of $ 1,657 to the low of $ 1,444. It is now trading well above $ 1,600 and the simple moving average of 100 (4 hours). There is also a large bullish trendline with support near $ 1,550 on the same chart.
On the upside, the first major resistance is near the USD 1,700 level. The 1,236 Fib extension level of the downward move from the high of $ 1,657 to the low of $ 1,444 is also close to $ 1,720. A successful break above $ 1,700 and $ 1,720 could open the doors for a move towards $ 1,800.
Dips Limited in Ether (ETH)?
If Ethereum doesn’t extend its surge above $ 1,700, a downside correction could occur. Immediate support is near the $ 1,600 level. The next support is near the 100 hour SMA at $ 1,575.
The main support is now forming near the trendline and USD 1,550. Unless the ether price stays above trendline support, there is a risk of a larger decline in the sessions to come.
Technical indicators
4 hours MACD – The MACD for ETH / USD is now gaining momentum in the bullish zone.
4 hour RSI – The RSI for ETH / USD is well above the 50 level.
Main support tier – $ 1,550
Main Resistance Level – $ 1,700
