Ethereum Rally Loses Steam, Why ETH Could Revisit Resistance Turned Support

2023-08-30 04:11:51

Ethereum price rallied above the $1,700 resistance against the US Dollar. ETH struggled near $1,750 and is currently correcting gains.

Ethereum gained momentum above the $1,660 and $1,670 levels.
The price is trading above $1,700 and the 100-hourly Simple Moving Average.
There was a break above a key bearish trend line with resistance near $1,650 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is now correcting gains from the $1,750 resistance.

Ethereum Price Rally Stalls

Ethereum’s price was able to start a decent increase from the $1,620 zone. ETH formed a base and started a steady increase above the $1,650 resistance, like Bitcoin.

There was a break above a key bearish trend line with resistance near $1,650 on the hourly chart of ETH/USD. The pair climbed higher above the $1,670 and $1,700 resistance levels. However, the bears were active near the $1,750 zone.

A high is formed near $1,747 and the price is now correcting gains. There was a move below the $1,720 level. The price declined below the 23.6% Fib retracement level of the upward move from the $1,639 swing low to the $1,747 high.

Ether is now trading above $1,700 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1,725 level. The next resistance is near the $1,750 level.

A close above the $1,750 level might send the price toward the $1,850 zone. If there is a clear move above $1,850, Ethereum could rise toward the $1,920 resistance. Any more gains might send the price toward the $2,000 resistance.

Are Dips Supported in ETH?

If Ethereum fails to clear the $1,750 resistance, it could continue to move down. Initial support on the downside is near the $1,700 level. The first key support is close to $1,680 or the 61.8% Fib retracement level of the upward move from the $1,639 swing low to the $1,747 high.

The next major support is near the $1,660 level. If there is a downside break below $1,660, the price could accelerate lower toward the $1,620 level. Any more losses might send the price toward the $1,540 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,680

Major Resistance Level – $1,750

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