TA: Ethereum Holding Gains above $1,700, Why ETH Remains In Strong Uptrend
Ethereum traded to a new all-time high at $1,840 before correcting lower against the US Dollar. ETH price is holding the $1,700 level and it is likely to start a fresh increase.
- Ethereum started a downside correction after trading to a new all-time high near $1,840.
- The price is now trading nicely above $1,700 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $1,760 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a fresh increase as long as it is above the $1,700 support zone.
Ethereum Price Steadies above $1,700
There were slow and steady moves in Ethereum above the $1,750 pivot level (unlike bitcoin). ETH even traded to a new all-time high near $1,840 before there was a downside correction.
The price traded below the $1,780 and $1,760 support levels. Ether price even spiked below the $1,700 level, but downsides were limited. It is now trading nicely above $1,700 and the 100 hourly simple moving average.
There was a recovery above the $1,730 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $1,840 high to $1,681 low. On the upside, the first key resistance is near the $1,760 level. There is also a key contracting triangle forming with resistance near $1,760 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The triangle resistance is near the 50% Fib retracement level of the recent decline from the $1,840 high to $1,681 low. A proper break above $1,760 might start a steady increase above $1,800. The next major resistance is near the $1,825 level. A close above the $1,825 level could pump the price towards the $1,900 and $1,920 levels in the short-term.
Dips Supported in ETH?
If Ethereum fails to clear the $1,760 and $1,800 resistance levels, it could correct lower. On the downside, the first major support is near the $1,715 level and the triangle lower trend line.
The main support is near the $1,700 zone and the 100 hourly simple moving average. A close below the 100 hourly SMA may possibly start a major downside correction towards $1,600 or even $1,550.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now close to the 50 level.
Major Support Level – $1,700
Major Resistance Level – $1,760