Ethereum started a fresh surge from the USD 480 support zone against the US dollar. The ETH price has to exceed USD 550 to start a strong uptrend towards USD 600.
- ETH price dropped sharply from $ 620 and even tested $ 480 against the US dollar.
- The price is currently bouncing back above $ 500 and the simple moving average of 100 (4 hours).
- An important bearish trendline is forming on the 4-hour chart of ETH / USD (data feed via Kraken) with resistance near USD 550.
- The pair could rise sharply towards $ 580 and $ 600 if it clears the $ 550 resistance.
Ethereum price is approaching the next break
Over the past week, Bitcoin and Ethereum saw strong downward revisions against the US dollar, below $ 17,000 and $ 550, respectively. The ETH price was even below the support of $ 500 and the simple moving average of 100 (4 hours).
It tested the USD 480 support level and formed a support base for a new hike. Ether bounced back above the $ 500 level and 100 simple moving average (4 hours). The price even surged above the 23.6% fib retracement level of the downward correction from $ 620 swing high to $ 480 swing low.
The price is now approaching a large resistance area near $ 550. A major bearish trendline is also forming on the 4 hour chart of ETH / USD with resistance near USD 550.
Source: ETHUSD on TradingView.com
The 50% fib retracement level of the downside correction from the $ 620 swing high to the $ 480 swing low is also close to the $ 550 level to act as the main resistance. A successful break above the $ 550 level could trigger a strong uptrend.
The next key resistance is near the $ 580 level. If ether removes the $ 580 resistance, it could even retest or exceed the $ 600 resistance level in the coming sessions.
New decline in the ether (ETH)?
If Ethereum doesn’t extend its surge above $ 550, it could start another downward trend. The first major support zone is near the $ 520 level.
The simple moving average of 100 (4 hours) is also close to the $ 512 level to act as major support. A downside break below the $ 512 and $ 500 levels could increase the risk of further losses below $ 480 for ether.
4 hours MACD – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
4 hour RSI – The RSI for ETH / USD is now above the 50 level but is showing some bearish signs.
Main support tier – $ 512
Main Resistance Level – $ 550