Can Ethereum Bulls Break Resistance and Push the Price Higher?

Can Ethereum Bulls Break Resistance and Push the Price Higher?

The Upside Potential of Ethereum Price

The Ethereum price is currently poised for a significant upside break above the $1,650 level against the US Dollar. This could potentially trigger a bullish momentum for ETH if it manages to close above both the $1,650 and $1,670 levels. Let’s take a closer look at the factors influencing the Ethereum market and explore the potential implications.

Ethereum’s Journey Towards Resistance

ETH has been steadily advancing, having formed a solid base above the $1,580 level. It then broke past the $1,620 resistance, similar to Bitcoin’s upward trajectory. Currently, Ethereum is trading near a critical barrier at $1,650, a price level that could serve as a catalyst for further gains. Additionally, Ethereum is maintaining its position above $1,610 and the 100-hourly Simple Moving Average, indicating the market’s positive outlook.

Chart Analysis and Support

Analyzing the hourly chart of ETH/USD, we can observe the formation of a short-term rising channel with support near $1,630. This channel acts as a protective barrier and provides stability in the event of a price correction. On the upside, potential resistance levels lie at $1,645 and $1,650. The breakthrough of the $1,650 resistance level could lead to a push towards the subsequent resistance at $1,670.

Source: ETHUSD on TradingView.com

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The Path to Steady Increase

For Ethereum to embark on a sustained upward trajectory, it needs to establish a firm foothold above the $1,670 resistance level. If successful, the next significant obstacle lies near the $1,750 level. A breach beyond $1,750 has the potential to propel Ethereum even higher, potentially reaching $1,880.

Potential Rejection Scenario

However, failure to clear the $1,650 resistance level may trigger another downturn for Ethereum. In this scenario, initial support can be found near the $1,630 level and the channel trend line. Should a decline occur, the first key support area rests at $1,610, which coincides with the 100-hourly Simple Moving Average and the 50% Fib retracement level of the recent increase. Further down, the next critical support sits at $1,580. A bearish breakthrough below $1,580 might initiate another downward wave, potentially driving the price towards the $1,520 level in the near term.

Technical Indicators

Examining the technical indicators, we find that the hourly MACD for ETH/USD is gaining momentum within the bullish zone, signaling a positive outlook. Moreover, the hourly RSI has surpassed the 50 level, further supporting the bullish sentiment.

Summary

In summary, Ethereum’s price is currently eyeing an upside break above $1,650 against the US Dollar. The formation of a short-term rising channel, steady trading above the 100-hourly Simple Moving Average, and bullish technical indicators indicate positive market sentiment. However, it is essential to monitor the potential rejection at the $1,650 level to anticipate any downturn. Furthermore, the successful breach of the $1,650 resistance level could pave the way for Ethereum’s journey towards $1,670 and beyond.

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