Ethereum Price Looks Primed For Gains Until This Changes

Ethereum price is slowly moving higher above $1,600 against the US Dollar. ETH could gain bullish momentum unless there is a nasty drop below $1,550.

• Ethereum is showing a few positive signs for a move above the $1,650 resistance.
• The price is trading above $1,600 and the 100-hourly Simple Moving Average.
• There was a break above a key bearish trend line with resistance near $1,610 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent increase if there is a close above $1,650 and $1,670.

Ethereum Price Shows Bullish Signs

Ethereum’s price remained well-supported above the $1,550 level. ETH climbed higher slowly above the $1,580 and $1,600 resistance levels, like Bitcoin.

There was a break above a key bearish trend line with resistance near $1,610 on the hourly chart of ETH/USD. The pair even broke the $1,620 resistance. However, the bears are still active below the $1,650 level. A high is formed near $1,638 and the price is now consolidating gains.

Ether is now trading above $1,600 and the 100-hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the recent increase from the $1,530 swing low to the $1,638 high.

On the upside, the price might face resistance near the $1,635 level. The next resistance is near the $1,650 level. A close above the $1,650 resistance might send the price toward the $1,670 resistance. If the price reclaims the $1,670 resistance, there could be a steady increase.

Source: ETHUSD on TradingView.com

The next major hurdle is near the $1,750 level. A close above the $1,750 level might send Ethereum further higher toward $1,880.

Another Drop in ETH?

If Ethereum fails to clear the $1,650 resistance, it could start another decline. Initial support on the downside is near the $1,600 level and the 100-hourly Simple Moving Average.

The first key support is close to $1,585 and the 50% Fib retracement level of the recent increase from the $1,530 swing low to the $1,638 high. The next key support is $1,550. A downside break below $1,550 might spark a fresh round of selling. In the stated case, the price could even decline toward the $1,500 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

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

Major Support Level – $1,600

Major Resistance Level – $1,650

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