Ethereum is recovering higher from the USD 535 support zone against the US dollar. ETH price must surpass USD 580 to start a strong rally towards USD 600 and USD 620 in the near term.
- The ETH price found support near USD 535 and started a steady recovery against the US dollar.
- The price is currently trading above USD 560 and the simple 100 (4 hours) moving average.
- A crucial contracting triangle is forming with a resistance near USD 570 on the ETH / USD 4-hour chart (data feed via Kraken).
- The pair could see strong gains if there is a clear break above USD 570 and USD 580.
Ethereum price is approaching a major breakthrough
Last week bitcoin and ethereum saw a downward extension below USD 18,000 and USD 550 against the US dollar, respectively. In fact, the ETH price spiked below the USD 540 support and settled below the simple 100 (4 hours) moving average.
However, the bulls were able to protect the USD 530 support zone. A swing low was formed at $ 535 and the price recently started a steady upward movement. There was a clear break above the $ 550 resistance level.
The ether price also surpassed the 50% Fib retracement level from the downward move from the $ 578 swing high to the $ 535 swing low. It is now trading near the USD 570 resistance zone and above the simple 100 (4 hours) moving average. A crucial contracting triangle is also forming with a resistance near USD 570 on the ETH / USD 4-hour chart.
Source: ETHUSD on TradingView.com
Triangle resistance is close to the 76.4% Fib retracement level of the downward move from the $ 578 swing high to the $ 535 swing low. The next big resistance and major breakthrough zone is near the USD 580 level.
A successful break above the USD 570 resistance and a follow-up move above the USD 580 level could trigger a surge. The next big resistance is near USD 600, above which it could rise towards the USD 620 level.
New decline in Ether (ETH)?
If Ethereum fails to clear the USD 570 and USD 580 resistance levels, there is a risk of another bearish reaction. An initial support is near USD 555.
The first major support zone is near the USD 550 level and the bottom trendline of the triangle. A downside break below the triangle support could move the price towards the USD 535 support zone.
4 Hour MACD – The MACD for ETH / USD is slowly gaining traction in the bullish zone.
4 Hour RSI – The RSI for ETH / USD is showing positive signs and is above the 50 level.
Major Support Level – USD 550
Major Resistance Level – $ 570