Ethereum Price Gains are Slowing but Not Likely Over – Here’s Why
Ethereum price faced resistance near $1,650 against the US Dollar. ETH corrected gains but the $1,620 support might spark another upward movement.
- Ethereum is eyeing a key upside break above the $1,650 resistance.
- The price is trading above $1,625 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trend line with resistance near $1,625 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if there is a close above $1,650 and $1,670.
Ethereum Price Aims Higher
Ethereum’s price was able to climb further above the $1,620 resistance. However, ETH struggled to gain strength for a move above the $1,650 resistance, like Bitcoin.
There was a downside correction below the $1,630 level. The price even spiked below $1,620 but the downsides were limited. A low was formed near $1,613 and the price is now moving higher. There was a break above the $1,620 level and the 23.6% Fib retracement level of the recent decline from the $1,652 swing high to the $1,613 low.
Besides, there was a break above a connecting bearish trend line with resistance near $1,625 on the hourly chart of ETH/USD. Ether is now trading above $1,625 and the 100-hourly Simple Moving Average.
On the upside, the price might face resistance near the $1,635 level or the 76.4% Fib retracement level of the recent decline from the $1,652 swing high to the $1,613 low at $1,642. The next resistance is near the $1,650 level. A close above the $1,650 resistance might send the price toward the $1,670 resistance.
Source: ETHUSD on TradingView.com
If there is a close above $1,670, the price might start a strong increase. The next major hurdle is near the $1,750 level. A close above the $1,750 level might send Ethereum further higher toward $1,880.
Another Drop in ETH?
If Ethereum fails to clear the $1,650 resistance, it could start another decline. Initial support on the downside is near the $1,620 level.
The first key support is close to $1,610. The next key support is $1,585. A downside break below $1,585 might start another bearish wave. In the stated case, the price could even decline toward the $1,520 level in the near term.
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,610
Major Resistance Level – $1,650
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