Analysis

TA: Ethereum Consolidates Above $600, A Strengthening Case for Upside

Ethereum cleared the $ 600 resistance level and tested the $ 625 zone against the US Dollar. ETH price is consolidating above $ 600 and likely setting up for the next move.

  • Ethereum settled above the key $ 600 resistance level and climbed towards $ 625.
  • The price is currently consolidating near the $ 600 support and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $ 620 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase above $ 620 as long as it is above the 100 hourly SMA.

Ethereum Price Resistance Turned Support

There was a steady increase in Ethereum after it broke the $ 600 resistance. ETH price even broke the $ 610 level and settled above the 100 hourly simple moving average.

It traded close to the $ 625 resistance before starting a downside correction. A high was formed near $ 624 and the price corrected lower below $ 615. There was a break below the 50% Fib retracement level of the upward move from the $ 587 swing low to $ 624 high.

Ether is currently approaching the $ 600 support zone and trading above the 100 hourly simple moving average. There is also a major contracting triangle forming with resistance near $ 620 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

The triangle support is close to the 61.8% Fib retracement level of the upward move from the $ 587 swing low to $ 624 high. As long as the price is above the $ 600 support and the 100 hourly simple moving average, it could start a fresh increase.

An initial resistance is near the $ 615 level. The main resistance is near the $ 620 level, above which ether price is likely to accelerate higher above $ 625 and $ 630.

Downside Break in ETH?

If ethereum fails to clear the $ 615 resistance and the triangle upper trend line, there is a risk of a downside break. The first key support is near the $ 600 level and the 100 hourly simple moving average.

A downside break below the $ 600 support and the 100 hourly SMA could spark a sharp decline. The next major support is near the $ 570 level, where the bulls are likely to take a stand.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly losing momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently rising and approaching the 50 level.

Major Support Level – $ 600

Major Resistance Level – $ 620

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