Ethereum found support near $1,735 and corrected higher against the US Dollar. ETH is now facing major resistance near $1,885 and $1,920.
- Ethereum is slowly moving up and is trading above $1,850.
- The price is now trading above $1,860 and the 100 hourly simple moving average.
- There was a break above a major downtrend line with resistance near $1,840 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could go steadily higher if there is a clear move above the $1920 resistance zone.
Ethereum price rises higher
Ethereum spiked below the $1,760 support zone. However, ETH remained well offered above the $1,720 level. A low was formed near $1,734 and the price started a fresh rise.
There was a clear move above the $1,800 and $1,820 levels. Furthermore, there was a break above a major downtrend line with resistance near $1,840 on the hourly chart of ETH/USD. Ether price is now trading above $1,860 and the 100 hourly simple moving average.
It is now attempting a move above the 50% Fibonacci retracement level of the downward move from the $2,015 high to $1,734 low. On the upside, an initial resistance is near the $1,885 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,910 and $1,920 levels. It is near the 61.8% Fib retracement level of the downward move from the $2,015 high to $1,734 low. A clear move above the $1920 resistance could initiate a decent rally. In the indicated case, the price could return to $2,000. More gains could set the pace for a higher rise, it may be towards $2,120.
Limited dips in ETH?
If ethereum fails to break above the $1,920 resistance, it could be a downside correction. An initial support on the downside is near the $1,840 zone and the trend line is broken.
The next major support is near the $1,800 level and the 100 hourly simple moving average. A clear move below the $1,800 level could trigger a major drop. The next major support could be $1,760. More losses could send the price towards the $1,735 level in the short term.
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now in the overbought zone.
Major Support Level: $1,800
Major resistance level: $1,920