Ethereum Back to Square One, Why ETH Might Rise Again
Ethereum rose above $2,650 against the US dollar. The ETH price failed to climb above USD 2,700, reversed its gains and is now consolidating near USD 2,620.
Ethereum started a fresh rise above $2,600 but faced sellers above $2,700. The price is now trading above $2,600 and the 100 hourly simple moving average. There was a break above a key bearish trendline with resistance near $2,580 on the ETH/USD hourly chart (data feed via Kraken). The pair is consolidating above USD 2,600 and could begin fresh gains in the near term.
Ethereum Price Consolidating
Ethereum was able to establish a base above the USD 2,520 level. ETH started another surge above the key USD 2,600 and USD 2,620 resistance levels. There was also a move above the $2,700 level.
There was also a break above a key bearish trendline with resistance near USD 2,580 on the ETH/USD hourly chart. However, the bulls did not stay in action above $2,720. The price peaked near $2,733 and started a sharp decline.
There was a move below the USD 2,700 and USD 2,650 support levels. The price even dropped a few points below the 50% Fib retracement level from the recent rally from the $2,506 swing low to $2,733 high.
The price is now consolidating above $2,600 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $2,650 level. The first major resistance is near the $2,685 level. The main resistance appears to be forming near the USD 2,700 zone.
Source: ETHUSD on TradingView.com
Ether price needs to clear the $2,685 and $2,700 resistance levels to start a steady rise. In the mentioned case, the price may perhaps rise towards the $2,800 level.
New Drop in ETH?
If ethereum fails to start a fresh rise above the $2,650 level, it could spark another drop. An initial support on the downside is near the USD 2,610 level.
The next major support is near the USD 2,600 level. It is near the 61.8% Fib retracement level from the recent rally from the $2,506 swing low to $2,733 high. A close below the $2,600 support zone could trigger a decline towards the $2,500 support zone.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – $2,600
Major Resistance Level – $2,700