Ethereum started a fresh increase from the $480 support zone against the US Dollar. ETH price must surpass $550 to start a strong upward move towards $600.
- ETH price declined heavily from $620 and it even tested $480 against the US Dollar.
- The price is currently recovering above $500 and the 100 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $550 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could rise sharply towards $580 and $600 if it clears the $550 resistance.
Ethereum Price is Approaching Next Break
This past week, bitcoin and ethereum saw a sharp downside correction below $17,000 and $550 respectively against the US Dollar. ETH price even spiked below the $500 support and the 100 simple moving average (4-hours).
It tested the $480 support level and formed a support base for a fresh increase. Ether recovered above the $500 level and the 100 simple moving average (4-hours). The price even climbed above the 23.6% Fib retracement level of the downside correction from the $620 swing high to $480 swing low.
The price is now approaching a major resistance area near $550. There is also a key bearish trend line forming with resistance near $550 on the 4-hours chart of ETH/USD.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the downside correction from the $620 swing high to $480 swing low is also near the $550 level to act as a major resistance. A successful break above the $550 level could spark a strong upward move.
The next key resistance is near the $580 level. If ether clears the $580 resistance, it could even retest or surpass the $600 resistance level in the coming sessions.
Fresh Decline in Ether (ETH)?
If Ethereum fails to extend its rise above $550, it could start another downward move. The first major support zone sits near the $520 level.
The 100 simple moving average (4-hours) is also near the $512 level to act as a major support. A downside break below the $512 level and $500 might put ether at a risk of more losses below $480.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now above the 50 level, but showing a few bearish signs.
Major Support Level – $512
Major Resistance Level – $550
by Aayush Jindal on November 29, 2020 at 11:38AM
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