TA: Ethereum Lacks Momentum Above $1,700, Why Dips Likely To Be Limited

NewsBTC

Ethereum recovered above $1,700 and it even tested $1,730 against the US Dollar. ETH price is showing positive signs, but it must settle above $1,720 for a sustained upward move.

  • Ethereum gained traction after there was a close above the $1,600 level.
  • The price is now above the $1,650 resistance and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $1,675 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a strong rally if there is a clear break above $1,710 and $1,730.

Ethereum Price Turns Green

Ethereum found support near the $1,550 zone and started a steady increase, similar to bitcoin. ETH cleared a few important hurdles near $1,600 and $1,620 to move into a positive zone.

The main hurdle cleared was near $1,650 and the 100 hourly simple moving average. The price even climbed above the $1,700 level. A high was formed near the $1,733 level before there was a downside correction.

There was a break below the $1,700 level, but the price remained stable near the $1,660 level. A low is formed near $1,662 and the price is rising. It is now above the $1,650 resistance and the 100 hourly simple moving average.

There is also a key bullish trend line forming with support near $1,675 on the hourly chart of ETH/USD. An immediate resistance is near the $1,700 level. It is close to the 50% Fib retracement level of the downward move from the $1,733 high to $1,662 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The first key resistance is near a connecting bearish trend line at $1,710 on the same chart. The trend line is close to the 61.8% Fib retracement level of the downward move from the $1,733 high to $1,662 low.

A clear break above the $1,700 and $1,710 levels could set the pace for a strong increase. In the stated case, the price is likely to visit the $1,750 and $1,780 levels.

Fresh Decline in ETH?

If Ethereum fails to climb above the $1,700 and $1,710 resistance levels, it could start a fresh decline. An initial support on the downside is near the $1,685 level and the 100 hourly SMA.

The first key support is near the $1,675 level and the trend line. The main support is near the $1,650 level. A clear downside break below the $1,650 support could lead the price towards the $1,550 level.

Technical Indicators

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

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

Major Support Level – $1,650

Major Resistance Level – $1,720

via NewsBTC

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