TA: Ethereum Stuck In A Range, Why $1,700 Is The Key For Next Move
Ethereum failed to clear the $1,850 resistance and corrected lower against the US Dollar. ETH price is still holding the key $1,710 support and it seems to be trading in a range.
- Ethereum is moving in a range below the $1,850 resistance and above the $1,710 support.
- The price is now above the $1,710 support, but it is below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,790 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely start a strong increase as long as there is no clear break below $1,700.
Ethereum Price is Holding Key Support
Ethereum extended its rise above the $1,800 and $1,820 resistance levels. ETH even broke $1,840, but it failed to surpass the key $1,850 resistance zone.
A high was formed near $1,849 before the price started a fresh decline. It broke the $1,800 support and the 100 hourly simple moving average. Ether tested the $1,710 support zone, where the bulls took a strong stand. It seems like the price is moving in a range below the $1,850 resistance and above the $1,710 support.
The price is trading above the 23.6% Fib retracement level of the recent decline from the $1,849 high to $1,732 low. On the upside, the price is facing hurdles near the $1,800 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $1,790 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $1,849 high to $1,732 low. A close above the $1,800 resistance may possibly lead the price towards the $1,850 level. To start a strong increase, the price must settle above $1,850 in the near term.
More Losses in ETH?
If Ethereum fails to climb above the $1,800 and $1,850 resistance levels, it could attempt a downside break. An initial support on the downside is near the $1,740 level.
The main support is still near the $1,710 and $1,700 levels, below which ether price might start a strong decline towards the $1,650 and $1,620 levels.
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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