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Ethereum gained bullish momentum and broke the $ 550 resistance against the US dollar. The price of ETH has risen by more than 8% and it appears that the bulls are pointing to $ 600 or $ 620.
- Ethereum started a new rise after breaking the $ 530 resistance level.
- The price passed a major hurdle at $ 550 and the hourly simple moving average of 100.
- There has been a break above a key bearish trendline with resistance near $ 540 on the ETH / USD hourly chart (data feed via Kraken).
- The pair is trading in a positive zone and could rise as high as $ 600 or $ 620.
The price of Ethereum rose by 8%
In the weekly analysis, we discussed the importance of the $ 550 resistance for Ethereum. The price of ETH has started to follow a steady bullish path and has overcome many hurdles near the $ 540 and $ 550 levels.
Bitcoin’s price also gained ground above $ 18,200, helping Ethereum break out of the $ 550 resistance. There was also a break above a key bearish trend line with resistance near $ 540 on the ETH / USD hourly chart. There was also a break above the 50% Fib retracement level of the key drop from the swing high of $ 623 to the low of $ 478.
Source: ETHUSD on TradingView.com
The pair settled well above the $ 565 level and the hourly moving average of 100. Ether tested the $ 590 resistance level. It appears the bears are protecting the Fib 76.4 retracement level. % of the key drop from swing high of $ 623 to low of $ 478.
A clear break above the $ 590 level could open the door for further gains above $ 600. In the stated case, the price is likely to revise the $ 620 resistance or the $ 623 swing in the near term. Any further gains could push the price towards the $ 650 level.
Dips supported in ETH?
If ethereum fails to break out of the $ 590 resistance level, there may be a small downside correction. Initial support is close to the $ 580 level (a multi-touch zone).
A sustained break below the $ 580 level could require a sustained decline. The next major support is near the $ 560 and $ 550 levels, followed by the key hourly moving average of 100. Any further losses could lead Ether towards the $ 530 support level.
Technical indicators
MACD hourly – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
RSI hourly – The RSI for ETH / USD is currently well above the 50 level.
Main Support Level: $ 550
Major Resistance Level – $ 590
