ETH is trading above the $1,600 pivot level.
Ethereum corrected lower sharply and tested $1,500 against the US dollar. ETH started a new rise and is now trading above the $1,600 pivot level.
Ethereum is picking up 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 downtrend line with resistance near $1,615 on the hourly chart of ETH/USD (data feed via Kraken). The pair could go higher if it sustains above the $1600 and $1580 support levels.
Ethereum Price Restarts Rise
Ethereum price started a sharp downward correction below the $1,600 level. ETH even dipped 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 was formed near $1,518 and the price started a sharp rise, similar to bitcoin. There was a steady rise above the $1,550 and $1,580 resistance levels. The bulls even pushed it above the $1,600 level.
Additionally, there was a break above a major downtrend 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 up move from the $1,518 low to $1,639 high. An immediate resistance is near the $1,640 level. The next major resistance is near the $1,665 level.
A bullish break above the $1,665 resistance zone could start a new rally. In the indicated case, the price perhaps rises towards the $1,720 resistance.
Dips Limited in ETH?
If Ethereum fails to clear the $1,640 resistance, another correction to the downside could begin. 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% Fibonacci retracement level of the up move, from the $1,518 low to $1,639 high. If there is a break below $1,580, the price could drop towards the $1,550 support. Further losses could require a retest of the $1,520 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level: $1,580
Highest Resistance Level: $1,640
Whether or not this is a good time to invest in Ethereum is a matter of making a financial decision after doing your own research, comparing its performance to that of other cryptos.
By Audy Castaneda
