TA: Ethereum Forms Bullish Technical Pattern, Why Close Above $1,850 Is Critical
Ethereum is holding gains above $1,750 against the US Dollar. ETH price is likely setting up for a crucial upside break above the $1,850 and $1,880 resistance levels.
- Ethereum is showing a few positive signs and it is trading nicely above $1,750.
- The price is now well above $1,750 and the 100 hourly simple moving average.
- There is a crucial breakout pattern forming with resistance near $1,840 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a strong rally if there is a close above the $1,850 resistance.
Ethereum Price is Showing Positive Signs
Ethereum corrected further lower below the $1,750 support zone, whereas bitcoin extended its rise. However, ETH remained well bid above $1,720 and $1,700 levels.
A low is formed near $1,724 and the price is currently rising steadily. There was a fresh move above the $1,800 resistance level. A high is formed near $1,845 and the price is currently consolidating gains. It corrected lower below the 23.6% Fib retracement level of the upward move from the $1,724 swing low to $1,845 high.
Ether is now well above $1,750 and the 100 hourly simple moving average. An initial support is near the $1,785 level. It is close to the 50% Fib retracement level of the upward move from the $1,724 swing low to $1,845 high.
Source: ETHUSD on TradingView.com
There is also a crucial breakout pattern forming with resistance near $1,840 on the hourly chart of ETH/USD. If ether price clears the triangle resistance and $1,850, there could be a strong increase. In the stated case, the price could rise towards the $1,900 and $1,920 resistance levels. The next major stop for the bulls could be $2,000.
Downside Break in ETH?
If Ethereum fails to continue higher above the $1,840 and $1,850 resistance levels, it could correct further lower. The first key support is near the $1,785 level.
The main support is now forming near the $1,750 level and the triangle lower trend line. If there is a downside break below the $1,750 support, ether price might decline towards the $1,725 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace 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
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Aayush Jindal, @KhareemSudlow