Ethereum Price Analysis: Potential Rally or Correction Ahead?

Ethereum’s price is on an upward trajectory, having moved above $1,600. The key resistance lies at $1,650, which, if breached, could lead to further gains. If the resistance holds, a correction may occur, targeting support levels down to $1,500. Technical indicators suggest a bullish momentum.

Ethereum’s price is currently experiencing a steady increase, having begun at the $1,550 level and is aiming to surpass the $1,650 resistance. The cryptocurrency recently moved above significant thresholds including $1,580 and $1,600 whilst trading above the 100-hourly Simple Moving Average. Additionally, Ethereum’s price has managed to break an important bearish trend line on the hourly chart against the USD.

The upward trajectory initiated above the $1,500 mark indicates a positive movement akin to Bitcoin’s recent activities. The resistance zone at $1,620 has also been surpassed, culminating in a peak at $1,644. Ethereum remains stably positioned above the 23.6% Fibonacci retracement level from its swing low of $1,566 to the recent high, solidifying its position above $1,600.

However, Ethereum may encounter obstacles near the $1,640 level, with key resistance identified at $1,650. A successful breakthrough at this juncture could thrust the price to higher levels, potentially reaching $1,720. Further gains may ensue if Ethereum surpasses this resistance, propelling the price towards the $1,800 or even the $1,840 resistance zones in the foreseeable future.

Conversely, if Ethereum is unable to breach the $1,650 resistance, a downward correction could occur. Initial support is located at $1,620, with the first significant support around $1,605, which coincides with the 50% Fibonacci retracement level. Any significant decline below $1,605 could see prices dropping to $1,580 and then down to the $1,550 support level, with the crucial support floor at $1,500.

From a technical perspective, the Hourly MACD for ETH/USD is showing bullish momentum while the Hourly Relative Strength Index (RSI) remains above the 50 threshold, suggesting an overall positive outlook in the short term for Ethereum.