Ethereum is steadily increasing, inching closer to a critical resistance level of $1,650. The cryptocurrency trades above $1,610, comfortably above the 100-hourly Simple Moving Average. Moreover, Ethereum’s price action has formulated a short-term rising channel with support near $1,630, as evidenced by the hourly chart of ETH/USD, according to data from Kraken.
Besides its strong positioning, Ethereum follows Bitcoin’s positive trajectory. The asset has formed a solid base above $1,580, surpassing the $1,620 resistance level. Hence, it’s currently operating in a favorable trading zone. Significantly, it’s also above the 23.6% Fib retracement level of its recent upward move from $1,582 to $1,644.
Additionally, the currency faces some resistance near the $1,645 level. Beyond this, the next major obstacle is at $1,650. If Ethereum successfully closes above these levels, it could extend its gains toward $1,670. The digital currency must settle above the $1,670 mark to maintain a consistent upward trend. Consequently, the following key resistance lies around $1,750, and surmounting this could push Ethereum toward the coveted $1,880 level.
However, it could be smoother sailing for Ethereum. We might witness a decline if it fails to clear the $1,650 resistance. Initial support levels on the downside are near the $1,630 mark, in line with the rising channel trend. The first significant support level comes at $1,610, which coincides with the 100-hourly Simple Moving Average and the 50% Fib retracement level of its recent gains.
Should Ethereum breach this support, the next crucial level is $1,580. A downside break below this mark could initiate a new bearish wave. In such a scenario, the cryptocurrency might reach as low as $1,520 soon.
The Hourly MACD suggests that Ethereum is gaining bullish momentum in technical indicators. Additionally, the Hourly RSI stands above 50, reinforcing the positive outlook. Hence, the major support and resistance levels to watch are $1,610 and $1,650 respectively.
In summary, Ethereum’s future seems promising but laden with challenges. The currency’s ability to break past the $1,650 resistance will largely dictate its short-term trajectory.
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