Ethereum could stage a new rally towards $600 as it increased from the recent $480 support zone against the US dollar. The ETH price has to surpass the $550 level in order to start a strong move towards $600 so let’s look into the price analysis of the ETH news today.
ETH’s price dropped from $620 and tested the $480 price range against the US dollar. The price is now recovering above $500 and the 100 simple moving average. There’s a key bearish trend as well forming with resistance close to the $550 level on the 4-hour charts of the pair. The pair could increase sharply towards $580 and $600 if it clears the $550 resistance.
Over the past week, BTC and ETH saw sharp declines and corrected below $17,000 and $550 against the US dollar. The ETH price even spiked below the $500 support and the 100-simple moving average. ETH even tested the $480 support level and formed a support base for a fresh increase. ETH recovered above the $500 level and the 100 simple moving average but the price then climbed above the 23.6% fib retracement level from the $620 swing high to the $480 swing low.
Now, Ethereum could stage a new rally as it approaches a critical area of $550. There’s a key bearish trend line forming with resistance near the $550 level on the 4-hour charts of the pair. The 50% fib retracement level from the downward correction from the $620 swing high to $480 swing low is nearing the $550 level as well and acts as a major resistance as well. Breaking above the $550 level could also spark an upward movement with the next key resistance level nearing the $580 level. if ETH surpasses the $580 resistance it could test the $600 range or shoot higher.
If ETH fails to extend the rise above $550, it could start a new downward movement. The first major support zone is nearing the $520 level but a downside break below it could lead the coin to $500 and risk more losses. The 4-hour MACD for the pair is in the bullish zone while the 4-hour RSI is well above the 50 levels. The major support level is set at $512 while the major resistance level is set at $550.
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