Ethereum Price Analysis: ETH is Facing Uphill Task Near $1,650
Ethereum price is recovering from $1,300 against the US Dollar. ETH/USD must settle above $1,650 to start a strong upward move in the coming sessions.
Ethereum Price Analysis
After a break below the $1,720 support, Ethereum extended its decline against the US Dollar. ETH broke the $1,500 support zone and it even settled below the 55 simple moving average (4-hours).
The price traded towards the $1,300 zone. A low was formed near $1,293 before the price started a strong recovery wave. The bulls pushed the price above the $1,300 and $1,400 levels. There was also a break above the 50% Fib retracement level of the downward move from the $1,715 swing high to $1,393 low.
There was also a break a key bearish trend line with resistance near $1,480 on the 4-hours chart. The price is now trading nicely above $1,500 and $1,520. However, it is facing resistance near the $1,600 zone and the 55 simple moving average (4-hours).
There is also a connecting bearish trend line with resistance at $1,630 on the same chart. The 76.4% Fib retracement level of the downward move from the $1,715 swing high to $1,393 low is also near $1,615.
Therefore, the price must clear the trend line resistance and $1,650 to move further higher. The next major resistance is near the $1,715 zone, above which the price could rally again. Conversely, the price might start a fresh decline below $1,550.
An initial support is near the $1,500 level. The main support is now forming near the $1,400 zone, below which there is a risk of a drop towards the $1,200 level.
Looking at the chart, Ethereum price is clearly testing a major resistance near $1,600 and the 55 simple moving average (4-hours). Overall, ether price is likely to continue higher if it clears the $1,650 and $1,700 resistance levels in the near term.
Technical indicators
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now above the 50 level.
Key Support Levels – $1,500, followed by the $1,400 zone.
Key Resistance Levels – $1,650 and $1,715.
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