TA: Why Ethereum Could Rally To $2,000 If It Clears $1,850
Ethereum managed to remain stable above $1,750 against the US Dollar. ETH price is now eyeing an upside break above the $1,850 and $1,880 resistance levels.
- Ethereum started a fresh increase after trading towards the $1,650 support zone.
- The price is now trading well above $1,750 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,825 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if there is a clear break above $1,825 and $1,850.
Ethereum Price Aims $2,000
Ethereum declined heavily below the $1,800 and $1,750 support levels. ETH price even dipped below the $1,700 level and the 100 hourly simple moving average.
However, the bulls took a strong stand near the $1,650 zone. A low was formed near $1,665 and the price started a fresh increase. There was a break above the $1,750 resistance level and the 100 hourly simple moving average.
Ether was able to climb above $1,800, but there was no break above $1,850. A high was formed near $1,835 and recently there was a minor dip. The price corrected below the $1,800 level. There was also a break below the 23.6% Fib retracement level of the recent wave from the $1,665 swing low to $1,835 high.
Source: ETHUSD on TradingView.com
The bulls are still active above the $1,750 support level. The 50% Fib retracement level of the recent wave from the $1,665 swing low to $1,835 high is also near $1,750.
On the upside, the price is facing a couple of hurdles near $1,825 and $1,850. There is also a major bearish trend line forming with resistance near $1,825 on the hourly chart of ETH/USD. If ether price clears the trend line resistance and $1,850, the bulls are likely to aim a rally towards the $2,000 level.
Fresh Dip in ETH?
If Ethereum fails to clear the trend line resistance or $1,850, it could start a fresh decline. On the downside, the first major support is near the $1,750 level.
The main support is near the $1,700 level. If there is a close below the $1,700 level, the bulls might lose control. In the stated case, there are chances of a drop towards the $1,650 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,750
Major Resistance Level – $1,850
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow