Ethereum Struggles Above $1,600, Why 100 SMA Is The Key

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Avatar for bunclelanre70
3 years ago

Ethereum traded to a new monthly high at $1,655 before correcting lower against the US Dollar. ETH price is struggling to stay above $1,600, but it is likely to remain stable as long as above the 100 hourly SMA.

Ethereum extended its rise above the $1,600 and $1,625 resistance levels.

The price is now correcting below $1,600 and approaching the 100 hourly simple moving average.

There is a major bullish trend line forming with support near $1,550 on the hourly chart of ETH/USD (data feed via Kraken).

The pair could either decline heavily below $1,550 or it might start a fresh increase above $1,620.

Ethereum extended its recovery wave above the key $1,600 resistance level. ETH even broke the $1,625 resistance level and settled well above the 100 hourly simple moving average.

It traded to a new monthly high near $1,655 before starting a downside correction. There was a break below the 23.6% Fib retracement level of the upward move from the $1,455 swing low to $1,655 high. Ether is now correcting below $1,600 and approaching the 100 hourly simple moving average.

An immediate support is near the $1,555 level. It is close to the 50% Fib retracement level of the upward move from the $1,455 swing low to $1,655 high. There is also a major bullish trend line forming with support near $1,550 on the hourly chart of ETH/USD.

On the upside, the price is facing hurdles near $1,600 and $1,615. There is also a connecting bearish trend line forming with resistance near $1,610 on the same chart.

If there is a clear break above $1,600 and the trend line resistance, there could be a steady increase. The next key resistance is near the $1,650 level, above which it could test $1,685.

If Ethereum fails to continue higher above the $1,600 and $1,610 resistance levels, it could resume its decline. An initial support on the downside is near the $1,550 level and the trend line.

The first major support is near the $1,540 zone and the 100 hourly SMA. A downside break below the $1,550 and $1,540 levels could open the doors for a move towards the $1,500 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now approaching the 50 level.

Major Support Level – $1,550

Major Resistance Level – $1,610

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Ethereum bulls are in full swing whereas attacking the $1,600 degree, at present up 1.77% intraday close to $1,595, amid preliminary Thursday. In doing so, the altcoin extends restoration strikes from a one-month low, marked on Sunday. Bears may have a bumpy highway on their return. The value is establishing on the draw back and the main target shifts to the upside. Bulls can goal a bullish construction’s neckline from the day by day chart as follows.

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