Ethereum, the world’s second-largest cryptocurrency, is on the verge of a significant upward move, eyeing a crucial breakout above the $1,650 resistance level. The digital asset has shown resilience as it trades above $1,625 and the 100-hourly Simple Moving Average, indicating a potential bullish momentum.
Recent developments on the hourly chart of ETH/USD, sourced from the Kraken data feed, paint an optimistic picture. Notably, a vital bearish trend line, which had been exerting downward pressure near $1,625, has been convincingly breached. This break above the trend line signifies a possible shift in Ethereum’s fortunes.
However, Ethereum, like its counterpart Bitcoin, has faced challenges surpassing the $1,650 resistance barrier. A notable correction occurred when the price dipped below $1,630, briefly touching $1,620. Fortunately for Ethereum enthusiasts, this downward movement was short-lived, with the price finding support at approximately $1,613. Subsequently, Ethereum reclaimed its upward trajectory.
The rally gained momentum as Ethereum surged past the $1,620 resistance level. Additionally, it conquered the 23.6% Fibonacci retracement level, measured from the recent peak at $1,652 to the aforementioned low of $1,613. These positive developments signal a potential shift in sentiment.
Moreover, Ethereum’s resilience was further underlined by the breach of a connecting bearish trend line with resistance near $1,625 on the hourly chart. This breakthrough solidified Ethereum’s position above $1,625 and its 100-hourly Simple Moving Average, instilling confidence among traders.
Looking ahead, Ethereum faces potential resistance around the $1,635 level and the 76.4% Fibonacci retracement level of the recent decline, which stands at $1,642. The ultimate goal remains a close above the stubborn $1,650 resistance, which could pave the way for further gains towards the $1,670 resistance level.
A decisive breakout above $1,670 might propel Ethereum into a strong upward trajectory, with the next significant hurdle near $1,750. A close above this level could send Ethereum soaring towards $1,880.
A retracement may ensue if Ethereum fails to overcome the $1,650 resistance. Initial support can be found near the $1,620 level, with a more critical support level at $1,610. A breach of this level could expose Ethereum to potential downward pressure, with $1,585 being the next key support level. In an adverse scenario, the price might even test the $1,520 level in the short term.
Technical indicators provide hope, with the hourly MACD indicating bullish momentum and the hourly RSI sitting above the pivotal 50 level.
In conclusion, Ethereum is at a pivotal juncture, aiming to surmount the $1,650 resistance level. A successful breakout could set the stage for a significant uptrend, but the digital asset must remain vigilant to potential downside risks. Traders and investors will closely monitor these critical levels in the coming sessions.