Why Ethereum Must Hold $1,700 for Fresh Rally To $2,000
Ethereum struggled to settle above the $1,850 resistance and corrected lower against the US Dollar. ETH price is must stay above $1,700 to avoid a strong downside break.
- ETH price is moving lower from the $1,850 resistance zone against the US Dollar.
- The price is approaching the $1,780 support and the 100 simple moving average (4-hours).
- There is a key rising channel forming with support near $1,775 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to decline heavily if it fails to stay above $1,775 and then $1,700 in the near term.
Ethereum Is Facing Hurdles
This past week, bitcoin and ethereum saw a fresh decline from $60,000 and $1,880 respectively against the US Dollar. ETH remained well bid above the $1,710 level and the 100 simple moving average (4-hours).
The last swing low was formed near $1,173 before there was an upward move. The price climbed above the $1,800 resistance level. There was a break above the 50% Fib retracement level of the downward move from the $1,942 high to $1,713 low.
However, the price failed to clear the $1,850 resistance zone. It seems like the price failed to clear the 61.8% Fib retracement level of the downward move from the $1,942 high to $1,713 low.
Source: ETHUSD on TradingView.com
Ether is currently declining and trading below $1,800. There is also a key rising channel forming with support near $1,775 on the 4-hours chart of ETH/USD. If there is a downside break below the channel support, there is a risk of a drop towards the $1,710 support. Any more losses below $1,700 may possibly open the doors for a larger decline towards $1,550 and $1,500.
Fresh Rally in Ether (ETH)?
If Ethereum stays above the channel support or $1,700, it could attempt a fresh increase. An initial resistance on the upside is near the $1,820 level.
The first key resistance is near the $1,850 and $1,855 levels. If ether price breaks the $1,850 resistance, there are high chances of a strong increase in the coming sessions. The next key resistance sits near the $1,920 and $1,950 levels.
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $1,710
Major Resistance Level – $1,850