TA: Ethereum Consolidates Above $1,750, Why A Crucial Break is Almost Certain
Ethereum is still consolidating above $1,750 and $1,710 against the US Dollar. ETH price could soon either rally above the $1,850 resistance or dive towards the $1,550 support.
- Ethereum is holding the key $1,750 and $1,710 support levels.
- The price is currently trading below $1,800 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $1,795 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be preparing a strong move with $1,710 as a pivot zone.
Ethereum Price is Holding Key Support
Ethereum made another attempt to gain strength above $1,850, but it failed just like bitcoin at $60,000. A high was formed near $1,865 before there was a sharp decline.
The price broke the $1,800 support and settled below the 100 hourly simple moving average. The recent swing low was formed near $1,754 and the price is now correcting higher. It is trading above the $1,765 level.
Ether is now testing the 50% Fib retracement level of the recent decline from the $1,811 high to $1,754 low. An immediate resistance is near the $1,790 and $1,800 levels. There is also a connecting bearish trend line forming with resistance near $1,795 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The trend line is close to the 61.8% Fib retracement level of the recent decline from the $1,811 high to $1,754 low. A successful close above the $1,800 level might call for a fresh test of $1,850. Any more gains could open the doors for a rally towards the $2,000 resistance in the near term. An intermediate resistance might be near the $1,935 level.
Downside Break in ETH?
If Ethereum fails to climb above the $1,800 and $1,850 resistance levels, it could nosedive. An initial support on the downside is near the $1,750 level.
The main support is still near the $1,710 and $1,700 levels. A clear downside break below the $1,710 support may possibly open the doors for a larger decline. In the stated case, the bears are likely to aim a test of the $1,550 support zone in the days. An intermediate support might be near the $1,640 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – $1,710
Major Resistance Level – $1,800
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