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Ethereum price rallied over 15% and broke the $1,650 resistance against the US Dollar. ETH might correct lower and test the $1,625 support zone.
- Ethereum started a major increase above the $1,600 resistance zone.
- The price is trading above $1,620 and the 100 hourly simple moving average.
- There is a short-term breakout pattern forming with resistance near $1,700 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but dips might be limited below the $1,625 support.
Ethereum Price Climbs Over 15%
Ethereum price started a major increase above the $1,550 resistance zone. ETH gained pace for a move above the $1,600 resistance zone and the 100 hourly simple moving average, similar to bitcoin.
The price even spiked above the $1,680 resistance zone and tested the $1,700 region. A high is formed near $1,701 and the price is now consolidating gains. There is also a short-term breakout pattern forming with resistance near $1,700 on the hourly chart of ETH/USD.
Ether price is now trading above $1,620 and the 100 hourly simple moving average. It is consolidating gains and well trading above the 23.6% Fib retracement level of the upward wave from the $1,371 swing low to $1,701 high.
On the upside, the price is facing resistance near the $1,700 zone. The first major resistance is near the $1,740 zone. The next major resistance is near the $1,765 level.
Source: ETHUSD on TradingView.com
A close above the $1,765 resistance zone might start another major increase. In this case, the price may perhaps rise towards the $1,850 resistance level. Any more gains might send the price towards $2,000.
Dips Limited in ETH?
If ethereum fails to clear the $1,700 resistance, it could start a downside correction. An initial support on the downside is near the $1,680 level.
The next major support is near the $1,625 zone. If there is a break below $1,625, the price might drop towards $1,535. It is near the 50% Fib retracement level of the upward wave from the $1,371 swing low to $1,701 high. Any more losses might call for a test of the $1,500 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 60 level.
Major Support Level – $1,625
Major Resistance Level – $1,700