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Ethereum, the second-largest cryptocurrency globally, is poised for a notable upward movement, targeting a significant breakout above the $1,650 resistance threshold. The digital currency has demonstrated strength as it trades above $1,625 and the 100-hourly Simple Moving Average, suggesting a potential bullish trend.
Recent updates on the hourly chart of ETH/USD, derived from the Kraken data feed, present an encouraging outlook. Importantly, a key bearish trend line that had been applying downward pressure near $1,625 has been decisively broken. This breach above the trend line indicates a possible change in Ethereum’s trajectory.
Nonetheless, Ethereum, similar to Bitcoin, has encountered difficulties in surpassing the $1,650 resistance level. A significant correction occurred when the price fell below $1,630, briefly reaching $1,620. Fortunately for Ethereum supporters, this decline was temporary, with the price finding support around $1,613. Following this, Ethereum resumed its upward path.
The rally gained traction as Ethereum moved beyond the $1,620 resistance level. Furthermore, it surpassed the 23.6% Fibonacci retracement level, calculated from the recent peak at $1,652 to the previously mentioned low of $1,613. These favorable developments indicate a potential change in market sentiment.
Additionally, Ethereum’s strength was further emphasized by the breach of a connecting bearish trend line with resistance near $1,625 on the hourly chart. This breakthrough reinforced Ethereum’s position above $1,625 and its 100-hourly Simple Moving Average, boosting trader confidence.
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Looking forward, Ethereum may encounter resistance around the $1,635 mark and the 76.4% Fibonacci retracement level of the recent decline, which is positioned at $1,642. The primary objective remains to close above the persistent $1,650 resistance, which could facilitate further advances towards the $1,670 resistance level.
A decisive breakout above $1,670 could drive Ethereum into a robust upward trend, with the next significant obstacle near $1,750. A close above this point could propel Ethereum towards $1,880.
A retracement may occur if Ethereum is unable to break through the $1,650 resistance. Initial support is located 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 significant support level. In a negative scenario, the price might even test the $1,520 level in the near term.
Technical indicators offer optimism, with the hourly MACD reflecting bullish momentum and the hourly RSI positioned above the crucial 50 level.
In summary, Ethereum is at a crucial point, striving to overcome the $1,650 resistance level. A successful breakout could lay the groundwork for a substantial uptrend, but the digital asset must remain cautious of potential downside risks. Traders and investors will closely observe these vital levels in the upcoming sessions.
The post Ethereum Gears Up for Potential Breakout Above $1,650 Resistance appeared first on BitcoinWorld.
