Ethereum started a surge above the USD 500 resistance to the US dollar. The ETH price traded as high as USD 562 and it is currently correcting gains.
- ETH price traded to a new multi-month high near $ 562 against the US dollar.
- The price is currently correcting below USD 550 but well above the simple 100 (4 hours) moving average.
- A major bullish trendline is forming with support near USD 495 on the ETH / USD 4hr chart (data feed via Kraken).
- The pair could correct lower, but dips are likely to remain attractive near USD 530 or USD 510.
Ethereum price is showing positive signs
Last week bitcoin and ethereum gained bullish momentum above USD 18,000 and USD 500 against the US dollar, respectively. ETH price rallied further above the USD 520 resistance and settled well above the simple 100 (4 hours) moving average.
The upward move was such that there was a break above a key USD 508 bound resistance trendline on the ETH / USD 4 hour chart. The pair gained momentum, trading above the $ 540 and $ 550 levels.
The ether price traded to a new multi-month high near $ 562 and recently started a short-term correction. It traded below the USD 550 level, breaking the 23.6% Fib retracement level of the recent upward move from the $ 503 swing low to the $ 562 high.
Source: ETHUSD on TradingView.com
The first major support on the downside is near the USD 532 and USD 530 levels. It is close to the 50% Fib retracement level of the recent upward move from the $ 503 swing low to the $ 562 high.
On the upside, the USD 555- USD 560 zone is a major hurdle for the bulls. A successful break above the USD 560 resistance could start another rally. In the case mentioned, the ether price is likely to climb towards the USD 580 and USD 585 levels.
Disadvantage correction in Ether (ETH)?
If Ethereum cannot extend its rise above USD 560, it may correct lower. The first major support zone is near the USD 532 and USD 530 levels.
If there are more losses, the ether price could drop towards the USD 510 support zone. A major bullish trendline is also forming with support near USD 495 on the same chart, where the bulls are likely to take a strong position.
4 Hour MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
4 Hour RSI – The RSI for ETH / USD corrects lower from the 80 level.
Major Support Level – USD 530
Major Resistance Level – $ 560