TA: Why Ethereum Above $1,500 Is Just The Start of A Major Rally - SMARTNAIRA

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Tuesday, 2 February 2021

TA: Why Ethereum Above $1,500 Is Just The Start of A Major Rally

Ethereum broke the $1,450 resistance and surged above $1,500 against the US Dollar. ETH price traded to a new all-time high at $1,550 and it is likely to continue higher.

  • Ethereum is up over 10% and it broke many hurdles near $1,450 and $1,500.
  • The price is now trading nicely above $1,500 and the 100 hourly simple moving average.
  • There was a break above a short-term contracting triangle with resistance near $1,535 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to accelerate higher towards the $1,580 and $1,600 levels in the near term.

Ethereum Price is Gaining Momentum

After forming a support base above $1,400, Ethereum finally broke the main $1,450 resistance zone. It opened the doors for a nasty increase in ETH price above the $1,475 and $1,500 resistance levels.

During the increase, there was a break above a contracting triangle with resistance near $1,445 on the hourly chart of ETH/USD. The pair cleared the 1.236 Fib extension level of the key decline from the $1,439 high to $1,270 swing low.

Ether price gained over 10% and traded to a new all-time high close to $1,550. Recently, there was a break above a short-term contracting triangle with resistance near $1,535 on the same chart.

Ethereum Price

Source: ETHUSD on TradingView.com

It seems like the price is currently struggling to clear the $1,550 zone. It is close to the 1.618 Fib extension level of the key decline from the $1,439 high to $1,270 swing low. A clear break above the $1,550 and $1,555 levels could set the pace for a larger increase in the coming sessions.

The next major resistance could be the $1,600 level, above which the bulls are likely to aim another 5%-8% rise in the next 2-3 sessions.

Dips Supported in ETH?

If Ethereum fails to clear the $1,555 and $1,580 levels, it could correct lower. On the downside, an initial support is near the $1,520 level. The first major support is near the $1,500 level.

The main support is now forming near the $1,450 level (the recent breakout zone). If there is a clear break below $1,450, ether price may perhaps revisit the $1,400 support zone.

Technical Indicators

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

Hourly RSI The RSI for ETH/USD is currently well above the 60 level.

Major Support Level – $1,500

Major Resistance Level – $1,555



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