News

Ethereum started a strong surge above the $500 resistance against the US Dollar. ETH price traded as high as $562 and it is currently correcting gains.

  • ETH price traded to a new multi-month high near $562 against the US Dollar.
  • The price is currently correcting lower below $550, but it is well above the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $495 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but dips are likely to remain attractive near $530 or $510.

Ethereum Price is Showing Positive Signs

This past week, bitcoin and ethereum gained bullish momentum above $18,000 and $500 respectively against the US Dollar. ETH price surged further above the $520 resistance and settled well above the 100 simple moving average (4-hours).

The upward move was such that there was a break above a key connecting resistance trend line at $508 on the 4-hours chart of ETH/USD. The pair gained pace and traded above the $540 and $550 levels.

Ether price traded to a new multi-month high near $562 and recently started a short-term correction. It traded below the $550 level, and broke the 23.6% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

Source: ETHUSD on TradingView.com

The first key support on the downside is near the $532 and $530 levels. It is close to the 50% Fib retracement level of the recent upward move from the $503 swing low to $562 high.

On the upside, the $555-$560 zone is a key hurdle for the bulls. A successful break above the $560 resistance might start another rally. In the stated case, ether price is likely to rally towards the $580 and $585 levels.

Downside Correction in Ether (ETH)?

If Ethereum fails to extend its rise above $560, it could correct lower. The first major support zone sits near the $532 and $530 levels.

If there are more losses, ether price could move down towards the $510 support zone. There is also a major bullish trend line forming with support near $495 on the same chart, where the bulls are likely to take a strong stand.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

4 hours RSI – The RSI for ETH/USD is correcting lower from the 80 level.

Major Support Level – $530

Major Resistance Level – $560

Products You May Like

Articles You May Like

New Peer to Peer Exchange Provides Africans with an Alternative to Paxful
XRP is on the “Verge of Something Big” as Trader Targets Move to $0.85
Prominent DeFi Coin Pickle Finance Plunges 50% in Wake of Attack
Bitcoin 2020 – What You NEED To Know Before Buying Bitcoin In 2020
Live Trading & Chart Analysis – Stock Market, Gold & Silver, Bitcoin – November 20, 2020
Bitcoin Explodes to New Yearly Highs at $18,700 Amid Wall Street Support

Leave a Reply

Your email address will not be published. Required fields are marked *