Ethereum (ETH) Needs To Clear $605 For Hopes of a Fresh Rally

Ethereum is consolidating in a contracting range above the $565 support against the US Dollar. ETH price must surpass $05 to start a strong upward move towards $625 and higher.

  • ETH price found support near $565 and started a steady recovery against the US Dollar.
  • The price is currently trading above $580 and the 100 simple moving average (4-hours).
  • There is a major contracting triangle forming with resistance near $602 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could rise sharply towards $600 or higher if it clears the $605 resistance.

Ethereum Price is Forming A Key Breakout

This past week, bitcoin and ethereum saw a minor downside correction below $18,800 and $580 respectively against the US Dollar. ETH price even spiked below the $572 support, but it remained stable above the 100 simple moving average (4-hours).

The $565 support zone acted as a strong barrier for the bears. A swing low was formed near $561 and the price started a fresh upward move. Ether climbed above the $575 and $580 levels. There was also a break above the 50% Fib retracement level of the downside reaction from the $625 swing high to $561 swing low.

Ethereum Price

Source: ETHUSD on TradingView.com

The price is now approaching a major resistance area near $600. There is also a major contracting triangle forming with resistance near $602 on the 4-hours chart of ETH/USD.

The triangle resistance is close to the 61.8% Fib retracement level of the downside reaction from the $625 swing high to $561 swing low. A successful break above the triangle resistance and $605 is must to start a strong increase. The next major resistance is at $620, above which the price could break the $636 yearly high.

Fresh Decline in Ether (ETH)?

If Ethereum fails to clear the $600 and $605 resistance levels, there is a risk of a bearish reaction. An initial support is near the $592 level.

The first major support zone sits near the $590 level and the triangle lower trend line. A downside break below the triangle support might lead the price towards the $565 support and the 100 simple moving average (4-hours).

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

4 hours RSI – The RSI for ETH/USD is showing positive signs and it is above the 50 level.

Major Support Level – $590

Major Resistance Level – $605