- Ethereum found support near $1,560 and started a fresh rise.
- The price is now trading above $1,620 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rally if there is a clear move above $1660 and $1670.
Ethereum price remains supported
Ethereum extended its decline below the $1,650 level. ETH even traded below the $1,600 support zone to move into a short-term bearish zone.
However, bulls have been active near the $1,550 and $1,560 levels. The price held steady above the 50% Fib retracement level of the bullish move from the $1,354 swing low to the $1,785 high. Ether price is now up and trading above the $1,600 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $1,785 high to $1,559 low. It is now trading above $1,620 and the 100 hourly simple moving average. An immediate resistance on the upside is seen near the $1,650 level.
There is also a major bearish trend line forming with resistance near $1,660 on the hourly chart of ETH/USD. The first major resistance is found near the $1,670 level. It is near the 50% Fib retracement level of the downside move from the $1,785 high to $1,559 low. A sharp move above the $1,670 level could initiate a steady rise towards $1,700. If the bulls stay in action, the price could possibly rise towards the $1,750 resistance zone.
Another drop in ETH?
If Ethereum fails to break above the $1,670 resistance, it could start a fresh decline. An initial downside support can be found near the $1,620 area.
The next major support lies near $1,560, below which there is a risk of a steep downside. If indicated, the price of Ether could perhaps decline towards the support of $1,505 in the short term. Any further losses could result in a test of the $1,450 level.
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