Ethereum formed a base near $1,740 and started to rally against the US dollar. ETH is now facing significant resistance near the $1,900 area.
- Ethereum started a recovery above $1,800 and $1,820.
- The price is now above $1,820 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $1,900 and $1,920 resistance levels to continue higher.
Ethereum price eyes upside breakout
Ethereum keep falling Below the $1,800 level. However, the bulls are active above $1,700. Prices were consolidating near $1,740 before initiating a sharp rise.
There is a clear move above the $1,800 resistance. Ether price surpassed the 50% Fib retracement level from the $1,910 swing high to the $1,700 floor. Additionally, there was a break above a major bearish trend line with resistance near $1,820 on the hourly chart of ETH/USD.
Prices are now well above $1,820, while 100 hourly simple moving average. It is also consolidating above the 76.4% Fib retracement level of the decline from the $1,910 swing high to the $1,700 bottom.
Source: ETHUSD on TradingView.com
On the upside, initial resistance is near $1,900. The next major resistance is near $1,920. A proper upside break above the $1,920 resistance could initiate a sharp rise. In the above-mentioned scenario, Ethereum price could rise towards the $2,000 resistance zone. Any more gains could push it towards the main $2,085 resistance zone.
A fresh dip in ETH?
If Ethereum fails to continue above the $1,920 resistance, it could start a fresh decline. Initial support on the downside is near $1,840.
The next major support is near $1,820 and the 100 hourly simple moving average. A break below the $1,820 level may require another sharp decline. In the aforementioned case, the price could revisit the $1,720 support area in the near term. The next major support is near $1,700.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $1,820
Major Resistance – $1,920