TA: Ethereum Regains Strength, Showing Early Signs of Fresh Rally
Ethereum started a fresh increase after it remained stable near $1,000 against the US Dollar. ETH could rise further above the $1,150 resistance zone.
- Ethereum gained strength for a move above the $1,080 and $1,100 levels.
- The price is now trading above $1,100 and the 100 hourly simple moving average.
- There was a break above a key contracting triangle with resistance near $1,075 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a move above the $1,150 resistance zone.
Ethereum Price Gains Pace
Ethereum remained stable above the $1,000 support and there was no downside break. As a result, a base was formed and the price started a decent increase.
The price was able to clear a couple of key hurdles near the $1,070 zone. There was a break above a key contracting triangle with resistance near $1,075 on the hourly chart of ETH/USD. The price even tested the 61.8% Fib retracement level of the key drop from the $1,235 swing high to $997 low.
Ether price traded as high as $1,158 and trading well above the 100 hourly simple moving average. It is also well above the 23.6% Fib retracement level of the recent increase from the $1,025 swing low to $1,158 high.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $1,150 level. The next major resistance is near the $1,180 zone, above which the price may perhaps clear the $1,200 resistance. In the stated case, the price could rise towards the $1,250 resistance. Any more gains might send the price towards the $1,300 zone.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,150 resistance, it could start a downside correction. An initial support on the downside is near the $1,125 zone.
The next major support is near the $1,090 zone and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent increase from the $1,025 swing low to $1,158 high. A downside break below the $1,090 support may perhaps put pressure on the bulls in the near term. The next major support sits near $1,060.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $1,125
Major Resistance Level – $1,090
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