Ethereum, the popular cryptocurrency, recently experienced a significant breakthrough, surpassing crucial resistance levels at $1,700 and $1,720. With the price currently trading above $1,700 and the 100-hourly Simple Moving Average (SMA), Ethereum’s upward momentum appears promising. This article delves into the recent developments, technical indicators, and potential price movements, shedding light on Ethereum’s future prospects.
Ethereum, the world’s second-largest cryptocurrency, displayed an impressive surge as it overcame the critical barriers at $1,700 and $1,720. This bullish movement was complemented by the price’s ability to maintain trading levels above $1,700 and the 100-hourly Simple Moving Average (SMA).
Analyzing the hourly chart of ETH/USD (data feed via Kraken), it becomes evident that Ethereum’s ascent was reinforced by a significant breakthrough of a major bearish trend line, which had resistance near $1,720. Furthermore, the bulls exhibited considerable strength by propelling the price beyond the $1,750 resistance and the 100-hourly SMA, testing the $1,770 level. Ultimately, Ethereum reached a high near $1,768 before undergoing a corrective phase.
Although a dip below the $1,750 level occurred, Ethereum’s retracement was limited. The price momentarily fell below the 23.6% Fibonacci retracement level, which measured the upward move from the $1,620 swing low to the $1,768 high. Nevertheless, Ethereum regained its footing and is currently trading above $1,700 and the 100-hourly SMA.
As the current scenario unfolds, immediate resistance is anticipated near the $1,740 level, with the next major hurdle at $1,770. A breakthrough above these levels could trigger a steady recovery wave, leading Ethereum toward the $1,820 mark. Ethereum might even aim for the $1,850 resistance if this upward momentum continues. Additionally, breaching the $1,850 level could pave the way for a potential surge toward the $1,920 resistance.
However, a renewed decline may ensue if Ethereum fails to surpass the $1,780 resistance. Initial support is expected near the $1,710 level, with the subsequent significant support residing at $1,675 or the 61.8% Fibonacci retracement level. A break and close below this support level could result in a further downward movement toward the $1,620 support. Any sustained losses may potentially push the price toward the $1,550 zone.
Considering the technical indicators, the hourly Moving Average Convergence Divergence (MACD) for ETH/USD indicates a loss of bullish momentum. Moreover, the hourly Relative Strength Index (RSI) has fallen below 50, implying a shift in market sentiment.
Ethereum’s recent price surge above crucial resistance levels demonstrates its strength and potential for further gains. Traders and investors closely watch Ethereum’s price action unfolds, with the $1,780 resistance as a pivotal point for determining its future trajectory. Meanwhile, support levels at $1,675 and $1,620 act as critical monitoring thresholds.
