ETH should expect “liftoff” in the price if it is able to close above the $580 level while recovering higher from the $535 support zone. The price has to surpass $580 in order for a new rally to be initiated towards $600 and $620 in the near-term we are reading more in the price analysis in our Ethereum price news.
ETH found support near the $535 and started a recovery against the US dollar with the price trading above $560 and the 100 simple moving average. There’s also a crucial contracting triangle forming with the resistance near the $570 on the 4-hour charts of the pair that could see if there’s a clear break above the $570 level.
Over the past week, BTC and ETH saw a downside extension below the $18,000 level and the $550 level against the US dollar. ETH’s price spiked below $540 support and settled below the 100 simple moving average but the bulls protected the $530 support so a new swing low was formed near $535 and the price already started increasing. There was also a break above the $550 resistance level.
Ethereum’s price surpassed the 50% retracement level from the downward movement at the $578 swing high to the $535 swing low and it is now trading near the $570 resistance zone and above the 100 simple moving average with a crucial contracting triangle that formed near the resistance line of $570 on the 4-hour charts. The triangle resistance is close to the 76.4% fib retracement level from the downward movement at the $578 swing high to the $535 swing low. The next resistance sits at the $580 level and ETH should expect a new liftoff.
Breaking above the $570 resistance and nearing the $580 level could start a strong increase as well with a possibility to hit near $600. If Ethereum fails to clear the $570 and the $580 resistance levels, there’s a risk of another bearish action with initial support near the $555 level. the first major support zone is set near $550 and the triangle lower trend line so another downside break below the triangle support could lead the price to $535. The technical indicators are gaining momentum in the bullish zone while the RSI for the pair shows positive signs in the 50 level. The major support level is set at $550 and the major resistance level is set at $570.
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