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Ethereum found support above $ 580 and corrected higher against the US dollar. The price of ETH is facing strong resistance near the $ 600 and $ 602 levels.
- Ethereum initiated a decent recovery wave above the $ 585 and $ 590 levels.
- The price is approaching the $ 600 barrier and is above the hourly simple moving average of 100.
- There is a key contraction triangle forming with resistance near $ 600 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could gain bullish momentum if there is a clear close above the $ 600 and $ 602 levels.
The price of Ethereum is showing positive signs
After a bearish reaction, Ethereum initiated a wave of recovery above the $ 580 level. The price of ETH also remained stable at the $ 585 level and the 100-hour simple moving average.
The price is currently locked in a range below $ 600 (similar to bitcoin) and it looks like it is preparing for the next move. The last swing low formed near the $ 565 level before the price recovered above the 23.6% Fib retracement level of the key downside move from the high of $ 636 to the low of $ 565.
Ether is currently approaching the $ 600 barrier and is above the 100-hour simple moving average. There is also a key contraction triangle forming with resistance near $ 600 on the ETH / USD hourly chart.
The resistance of the triangle coincides with the 50% Fib retracement level of the key downside move from the high of $ 636 to the low of $ 565. A positive close above the resistance levels of $ 600 and $ 602 could open the door to a sharp rise.
The next key resistance is at $ 610, above which the price could even rise above $ 620. Any further gains will most likely require a new annual high above $ 636.
Breaking to the downside in ETH?
If Ethereum fails to clear the triangle resistance and $ 602, there is a risk of another drop. An initial support is near the $ 590 level and the lower trend line of the triangle.
A break-down below the triangle support could push the price towards the $ 585 support and the 100-hour simple moving average. Any further losses could set the pace for a further decline to the swing low of $ 565 in the coming sessions. Intermediate support is found near the $ 570 level.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly gaining momentum in the bearish zone.
RSI hourly – The RSI for ETH / USD is currently well below the 50 level.
Main Support Level – $ 570
Major resistance level – $ 600
