Ethereum is recovering higher from the $ 535 support zone against the US Dollar. The price of ETH must surpass $ 580 to start a strong rally toward $ 600 and $ 620 in the near term.
- The ETH price found support near $ 535 and started a steady recovery against the US Dollar.
- The price is currently trading above $ 560 and the 100 simple (4-hour) moving average.
- An essential contracting triangle forms with resistance near $ 570 on the 4-hour chart of ETH / USD (data feed via Kraken).
- The pair could rise sharply if there is a clear cut above $ 570 and $ 580.
Ethereum Price is approaching Key Breakout
This past week, bitcoin and ethereum saw a handicap extension of under $ 18,000 and $ 550 respectively against the US Dollar. The price of ETH even spiked below the $ 540 support and settled below the 100 simple (4-hour) moving average.
However, the bulls were able to defend the $ 530 support zone. A low swing was formed near $ 535 and the price recently started a steady upward movement. There was a clear cut above the $ 550 resistance level.
Ether’s price also surpassed the 50% Fib level of the move down from the $ 578 swing high to $ 535 swing low. It is now trading near the $ 570 resistance zone and above the 100 simple (4-hour) moving average. There is also an essential contracting triangle that forms with resistance near $ 570 on the 4-hour chart of ETH / USD.
Source: ETHUSD on TradingView.com
The resistance of the triangle is close to the 76.4% Fib scale level of the downward movement from the high $ 578 swing to $ 535 low swing. The next big resistance and key cut-out zone sits near the $ 580 level.
A successful cut above the $ 570 resistance and a subsequent move above the $ 580 level could start a strong increase. The next big resistance is near $ 600, which could rise towards the $ 620 level above it.
Fresh Degradation in Ether (ETH)?
If Ethereum fails to clear the $ 570 and $ 580 resistance levels, there is a risk of another bearish reaction. Initial support is close to the $ 555 level.
The first major support zone sits near the $ 550 level and the lower trend line of the triangle. A disadvantage cut under the triangle support could lead the price toward the $ 535 support zone.
4 hours MACD – The MACD for ETH / USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH / USD is showing positive signs and is above the 50 level.
Major Assistance Level – $ 550
Great Resistance Level – $ 570