TA: Ethereum Rallies Above $1,700, Why ETH Could Soon Test $1,800

Ethereum started a strong increase above the $1,650 and $1,700 resistance levels against the US Dollar. ETH price is likely to continue higher towards $1,800 in the near term.

  • Ethereum started a fresh increase above the $1,650 and $1,700 resistance levels.
  • The price is now trading well above $1,700 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $1,660 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but the bulls are likely to remain active near $1,700 and $1,680.

Ethereum Price Gains Bullish Momentum

Ethereum formed a strong support base above $1,600 before it climbed above $1,650. ETH also formed a base above the $1,650 level before the bulls pushed the price above the $1,700 resistance level.

It gained over 5% and it traded to a new weekly high at $1,754. It is currently trading well above $1,700 and the 100 hourly simple moving average. An initial support on the downside is near the $1,700 level. The 50% Fib retracement level of the upward move from the $1,633 swing low to $1,754 high is also near $1,695.

Ethereum

Source: ETHUSD on TradingView.com

Moreover, there is a major bullish trend line forming with support near $1,660 on the hourly chart of ETH/USD. The trend line is close to the 76.4% Fib retracement level of the upward move from the $1,633 swing low to $1,754 high.

On the upside, the $1,750 level is a key resistance for more gains. A clear break above the recent high could open the doors for a move towards the $1,800 barrier. The next major resistance is near the $1,850 level.

Dips Supported in ETH?

If Ethereum fails to continue higher above the $1,740 and $1,750 resistance levels, it could start a downside correction. An initial support on the downside is near the $1,700 level.

The main support is now forming near the trend line and $1,650. If there is a downside break below the trend line support, there is a risk of more losses. In the stated case, ether price may possibly decline towards the $1,620 support zone in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is showing positive signs in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well above the 50 level.

Major Support Level – $1,650

Major Resistance Level – $1,750

Publication date: 
03/08/2021 - 07:08
Author: 
Disclaimer

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