Ethereum found support above $ 580 and corrected higher against the US dollar. ETH price is facing strong resistance near the USD 600 and USD 602 levels.
- Ethereum started a decent recovery wave above the USD 585 and USD 590 levels.
- The price is approaching the $ 600 mark and is above the 100-hour average.
- A major contraction triangle is forming on the hourly chart of ETH / USD (data feed on Kraken) with a resistance near USD 600.
- The pair could gain bullish momentum if there is a significant close above the $ 600 and $ 602 levels.
The Ethereum price is showing positive signs
After a downward reaction, Ethereum started a recovery wave above the USD 580 level. The ETH price also stayed stable at the $ 585 level and the 100 hour simple moving average.
The price is currently in a range below $ 600 (similar to Bitcoin) and seems to be preparing for the next step. The last swing low was formed near the $ 565 level before the price rebounded from the high of $ 636 to the low of $ 565 above the 23.6% fib retracement level of the key downtrend.
Ether is currently nearing the $ 600 mark and is above the 100-hour average. A major contraction triangle is also forming on the hourly chart of ETH / USD with resistance near USD 600.
The triangular resistance coincides with the 50% fib retracement level of the key down move from the high of $ 636 to the low of $ 565. A successful close above the USD 600 and USD 602 resistance levels could open the doors for a sharp rise.
The next major resistance is at $ 610, above which the price can settle as much as $ 620. Further gains will most likely require a new year high above $ 636.
Downward pause at ETH?
If the Ethereum fails to offset the triangular resistance and $ 602, it risks falling again. Initial support is near the USD 590 level and the lower trendline of the triangle.
A bearish break below the triangle support could push the price towards the USD 585 support and 100 hour simple moving average. Further losses could potentially set the pace for another decline towards the $ 565 swing lows in the upcoming sessions. Intermediate support is near the $ 570 level.
Hourly MACD – – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is currently well below the 50 level.
Main support tier – $ 570
Main Resistance Level – $ 600