TA: Why Ethereum Close above $1,600 Could Stage A Strong Rally

Ethereum started a steady increase above $1,450 and $1,500 against the US Dollar. ETH price is showing positive signs, but it must settle above $1,600 for upside continuation.

  • Ethereum started a decent recovery above the $1,450 resistance zone.
  • The price is now trading well above $1,500 and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $1,440 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is now facing a strong resistance near the $1,600 pivot level.

Ethereum Price is Recovering Nicely

Ethereum extended its decline towards the $1,300 level before correcting higher. ETH price formed a base above the $1,350 and recently climbed above the $1,400 resistance zone.

There was also a break above a key bearish trend line with resistance near $1,440 on the hourly chart of ETH/USD. It opened the doors for more gains above the $1,450 and $1,500 levels. Ether price even climbed above the $1,550 level and settled above the 100 hourly simple moving average.

Finally, there was a spike above $1,600 and the price traded as high as $1,618. It is currently consolidating gains above the $1,550 level. An initial support is near the 23.6% Fib retracement level of the recent wave from the $1,296 swing low to $1,618 high.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, the price is facing a strong resistance near the $1,600 and $1,615 levels. A daily close above the $1,600 level could open the doors for a fresh rally. In the stated case, the price might easily rise towards the $1,700 level.

Fresh Drop in ETH?

If Ethereum fails to continue higher above the $1,600 and $1,615 resistance levels, it could start a fresh decline. An initial support on the downside is near the $1,550 level.

The first major support is near the $1,500 zone and the 100 hourly simple moving average. The next major support is near the $1,450 level. It is close to the 50% Fib retracement level of the recent wave from the $1,296 swing low to $1,618 high. Any more losses might call for a test of the $1,420 support zone.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is now well above the 50 level.

Major Support Level – $1,500

Major Resistance Level – $1,600



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