The bulls established a position when the price of ethereum soared towards $1,370. Like bitcoin, ETH established a foundation and began to rise sharply above the $1,450 barrier.
The resistance levels of $1,500 and $1,565 were clearly broken. In the hourly chart of ETH/USD, there was also a break over a significant bearish trend line with resistance close to $1,480. The pair eventually overcame the $1,600 resistance and reached a high of $1,636.
Now, the price of ether is trading above both the 100 hourly simple moving average and the $1,580 mark. Trading above the 23.6% Fib retracement level of the upward movement from the $1,370 swing low to $1,636 high, it is consolidating gains.
The price is meeting resistance in the $1,630 area on the upside. The $1,680 area serves as the first significant resistance. Near the $1,700 mark, there is the next significant obstacle.
The $1,740 area continues to be the key area of resistance. A strong rise might begin if the $1,740 barrier zone is closed above. If so, there’s a chance that the price may increase and reach the $1,850 barrier level. Ethereum may begin a negative correction if it is unable to overcome the $1,630 resistance. The $1,580 mark provides some initial support on the downside.
The $1,560 area is the next significant area of support. The price could fall to $1,500 if there is a break below $1,560. It is close to where the upward movement from the $1,370 swing low to $1,636 high is retracing 50% of its previous upward movement. If there are any additional losses, the $1,430 mark may need to be tested.