Ethereum Could Correct Gains, Why Dips Remain Attractive Near $530
Ethereum began a sharp surge above the USD 500 resistance against the US dollar. The ETH price was $ 562 and is currently correcting gains.
- The ETH price reached a new multi-month high near USD 562 against the US dollar.
- The price is currently correcting below $ 550 but is well above the simple moving average of 100 (4 hours).
- A major bullish trendline is forming on the ETH / USD 4-hour chart (data feed via Kraken) with support near USD 495.
- The pair could correct lower, but the dips should remain attractive near $ 530 or $ 510.
The Ethereum price is showing positive signs
Over the past week, Bitcoin and Ethereum have seen positive momentum against the US dollar of over $ 18,000 and $ 500 respectively. ETH price continued to rise above the USD 520 resistance and was well above the simple moving average of 100 (4 hours).
The uptrend was such that there was a break on the 4 hour chart of ETH / USD above a major trend line for connection resistance at USD 508. The pair gained pace, trading above the $ 540 and $ 550 levels.
Ether price hit a new multi-month high near $ 562 and recently began a short-term correction. It traded below the $ 550 level, breaking the 23.6% fib retracement level of the recent uptrend from the $ 503 low to the $ 562 high.
Source: ETHUSD on TradingView.com
The first major support on the downside is near the USD 532 and USD 530 levels. It is close to the 50% Fib retracement level of the recent move up from the $ 503 low to the $ 562 high.
On the upside, the $ 555-560 zone is a major hurdle for the bulls. A successful break above the USD 560 resistance could trigger another rally. In the specified case, the ether price should move in the direction of 580 and 585 USD.
Downward correction in the ether (ETH)?
If Ethereum doesn’t extend its surge above $ 560, it could correct a lower value. The first major support zone is near the USD 532 and USD 530 levels.
If there are more losses, the ether price could decline towards the USD 510 support zone. There is also a large bullish trendline with support near $ 495 on the same chart where the bulls are likely to take a strong position.
4 hours MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
4 hour RSI – The RSI for ETH / USD corrected from 80 to lower.
Main support tier – $ 530
Main Resistance Level – $ 560