Ethereum is consolidating in an area of contraction above the USD 565 support against the US dollar. The ETH price has to exceed USD 05 to start a strong uptrend towards USD 625 and higher.
- ETH price found support near $ 565 and steadily rebounded against the US dollar.
- The price is currently trading above $ 580 and the simple moving average of 100 (4 hours).
- A large contraction triangle is forming on the 4-hour chart of ETH / USD (data feed via Kraken) with a resistance near USD 602.
- The pair could rise sharply towards $ 600 or higher if it clears the $ 605 resistance.
Ethereum price forms a key breakout
Over the past week, Bitcoin and Ethereum saw a minor downward correction against the US dollar, below $ 18,800 and $ 580, respectively. The ETH price was even below the USD 572 support but remained stable above the simple moving average of 100 (4 hours).
The USD 565 support zone was a strong barrier for the bears. A swing low was formed near $ 561 and the price started a new upward move. Ether climbed above the $ 575 and $ 580 levels. There was also a break above the 50% Fib retracement level of the downward reaction from the $ 625 swing high to the $ 561 swing low.
Source: ETHUSD on TradingView.com
The price is now approaching a large resistance area near $ 600. A large contraction triangle is also forming on the 4-hour chart of ETH / USD with resistance near USD 602.
The triangle resistance is close to the 61.8% Fib retracement level of the down reaction from the $ 625 swing high to the $ 561 swing low. A successful break above the triangle resistance and $ 605 is a must to start a sharp rise. The next major resistance is at $ 620, above which the price could break the year high of $ 636.
New decline in the ether (ETH)?
If Ethereum fails to hit the USD 600 and USD 605 resistance levels, it risks a bearish reaction. Initial support is near the USD 592 level.
The first major support zone is near the USD 590 level and the lower trendline of the triangle. A downside break below the triangle support could move the price towards the USD 565 support and 100 simple moving average (4 hours).
4 hours MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
4 hour RSI – The RSI for ETH / USD is showing positive signs and is above the 50 level.
Main support tier – $ 590
Main Resistance Level – $ 605