- Ethereum found support near $ 1,560 and started a new rally.
- The price is now trading above $ 1,620 and the hourly simple moving average of 100.
- There is a major bearish trend line forming with resistance near $ 1,660 on the ETH / USD hourly chart (data feed via Kraken).
- The pair could start a new rally if there is a clear move above $ 1660 and $ 1670.
The price of Ethereum remains supported
Ethereum extended its drop below the $ 1,650 level. ETH even traded below the $ 1,600 support zone to enter a short-term bearish zone.
However, the bulls have been active near the $ 1,550 and $ 1,560 levels. The price remained stable above the 50% Fib retracement level of the bullish move from the swing low of $ 1.354 to the high of $ 1.785. The price of ether is now rising and is trading above the $ 1,600 level.
There was a break above the 23.6% Fib retracement level of the downside move from the high of $ 1,785 to the low of $ 1,559. It is now trading above $ 1,620 and the hourly simple moving average of 100. Immediate upside resistance is seen near the $ 1,650 level.
There is also an important bearish trend line forming with a resistance near $ 1,660 on the ETH / USD hourly chart. The first major resistance is found near the $ 1,670 level. It is close to the 50% Fib retracement level of the downside move from the high of $ 1,785 to the low of $ 1,559. A strong move above the $ 1,670 level could initiate a steady rise towards $ 1,700. If the bulls stay in action, the price could rise towards the $ 1,750 resistance zone.
Another drop in ETH?
If Ethereum fails to break out of the $ 1,670 resistance, a new decline could begin. Initial downside support can be found near the $ 1,620 area.
The next major support is near $ 1,560, below which there is a risk of a steep downside. If indicated, the Ether price could possibly drop towards the $ 1,505 support in the near term. Any further losses could result in a test of the $ 1,450 level.
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