Ethereum (ETH) Could Start A New Rally, What Are The Critical Levels?
Ethereum is above the $ 1,300 support against the US Dollar. ETH price is likely to gain momentum above the $ 1,400 and $ 1,450 resistance levels in the near term. According to the technical analysis of NewsBTC’s Aayush Jindal:
- ETH experienced a correction against the US Dollar after the price surged as high as $ 1,438.
- The price is consolidating above the $ 1,320 support level and the 100 simple moving average (4 hours).
- There is a key bullish trend line formed with support near $ 1,295 on the 4-hour chart of ETH / USD ( based on Kraken data).
- The pair is likely to further accelerate its uptrend after breaking the $ 1,400 and $ 1,430 resistance levels.
Ethereum (ETH) Gives A New Rally Signal
Last week, Bitcoin and Ethereum saw a steady increase of over $ 1,300 and $ 35,000 respectively against the US Dollar. While BTC lost all its gains, ETH continued to trade well above the $ 1,300 support zone.
The recent high was around $ 1,438 before the price dropped. There was a break below the $ 1,380 support level. Ethereum price even traded below the 23.6% Fib retracement level of the price move from $ 1,207 to $ 1,438.
However, the price is consolidating above the $ 1,320 support level and the 100 simple moving average (4-hours). There is also a key bullish trend line formed with support near $ 1,295 on the 4-hour chart of ETH / USD. The trendline is near the 50% Fib retracement level of the bullish move from $ 1,207 to $ 1,438.
On the upside, the price is facing hurdles near the $ 1,400 and $ 1,430 levels. A successful break above the $ 1,400 and $ 1,430 resistance levels could open the doors for a sharp increase in the coming sessions. In the stated situation, the price could test the $ 1,500 resistance zone.
Will Ethereum (ETH) Fall?
If Ethereum fails to clear the $ 1,400 and $ 1,430 resistance levels, it could begin a downside correction. The first significant support on the downside is near the $ 1,300 level and the trend line.
A downside break below the trendline support would likely require testing of the $ 1,260 support level and the 100 simple moving average (4 hours). Further losses could push the ETH price into the $ 1,200 support zone.
- 4-hour MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
- 4-hour RSI – The RSI for ETH / USD is just above the 50 level.
- Major Support Level: $ 1,300
- Major Resistance Level: $ 1,430