Ethereum Challenges $1,600 – Good Opportunity to Go Long
Ethereum has begun a new rise above the $1,600 barrier level versus the US dollar. ETH is gathering momentum and may soon reach the $1,650 mark. Above $1,480, ETHEREUM has been strongly supported. The price currently trades over $1,550 and the 100 hourly simple moving average.
On the hourly chart of ETH/USD, a key rising channel is emerging with support near $1,510. More advances are expected above the $1,620 and $1,625 barrier levels. Ethereum attempted but was unable to break above the $1,605 barrier. Below $1,560 and $1,550, there was a severe bearish reaction.
The price of Ether fell below $1,520 and the 100 hourly simple moving average. On the other hand, the bulls were active at the $1,500 and $1,480 levels. The price has now risen after reaching a low near $1,473. A clear rise above $1,550 and the 100 hourly simple moving average occurred.
The price has risen above the 61.8% Fib retracement level of the latest drop from the $1,605 swing high to the $1,473 low. It is currently consolidating near the $1,600 level. On the hourly chart of ETH/USD, a key rising channel is forming with support near $1,510.
It is coming up against opposition at the $1,620 and $1,635 levels. The indicated resistance is near the 1.236 Fib extension level of the current slide from the swing high of $1,605 to the low of $1,473. The next significant resistance level is presently emerging near $1,650.
A clear break above $1,650 might drive the stock towards $1,700 resistance. Any further rises might pave the way for the $1,750 resistance challenge in the near future.
A New Drop in ETH?
If Ethereum fails to break through the $1,620 resistance, it may fall further. On the downside, initial support is nearly $1,560. The next important support is near $1,540 and the 100 hourly simple moving average, below which the ether price begins to fall.
In the scenario above, the price may fall to $1,520. Any further losses might push the price down to $1,480. Good luck!
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