TA: Ethereum Likely Gearing For Lift-Off to $500: Why Rally Isn’t Over Yet
Ethereum corrected lower, but it found a strong support near the $465 level against the US Dollar. ETH price is currently rising and it is likely to climb further towards $500.
- Ethereum is showing a lot of positive signs and it is now well above the $465 support level.
- The price is trading above the $480 resistance and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $478 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise steadily towards the $495 and $500 levels in the near term.
Ethereum Price is Signaling More Upsides
Ethereum corrected lower below the $475 level, but the bulls were able to protect the $465 zone. ETH price seems to be forming a strong support base above the $465 level and the 100 hourly simple moving average.
The recent swing low was near $470 before the price climbed higher. There was a break above the $475 and $480 resistance levels. More importantly, there was a break above a major contracting triangle with resistance near $478 on the hourly chart of ETH/USD.
Ether price climbed above $485 and tested the $490 zone. It is currently consolidating gains and trading near the 23.6% Fib retracement level of the recent upward move from the $470 low to $489 high.
Source: ETHUSD on TradingView.com
The first major support is near the $480 level. It is close to the 50% Fib retracement level of the recent upward move from the $470 low to $489 high. On the upside, the $490 level is a short-term resistance. A clear break above the recent high could open the doors for more upsides towards the $495 and $500 levels. The next target for the bulls could be $520.
Dips Supported in ETH?
If ethereum starts a fresh decline from $490 or $495, it is likely to find support near $480. The first major support below $480 is near the $472 level since it is close to the 100 hourly simple moving average.
The main support sits at $465. A successful close below the $465 support level could start a substantial decline and ether might drop towards the $450 level.
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $470
Major Resistance Level – $485