TA: Ethereum Forms Bullish Technical Pattern, Why Close Above $1,850 Is Critical

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Ethereum is holding gains above $1,750 against the US Dollar. ETH price is likely setting up for a crucial upside break above the $1,850 and $1,880 resistance levels.

  • Ethereum is showing a few positive signs and it is trading nicely above $1,750.
  • The price is now well above $1,750 and the 100 hourly simple moving average.
  • There is a crucial breakout pattern forming with resistance near $1,840 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to start a strong rally if there is a close above the $1,850 resistance.

Ethereum Price is Showing Positive Signs

Ethereum corrected further lower below the $1,750 support zone, whereas bitcoin extended its rise. However, ETH remained well bid above $1,720 and $1,700 levels.

A low is formed near $1,724 and the price is currently rising steadily. There was a fresh move above the $1,800 resistance level. A high is formed near $1,845 and the price is currently consolidating gains. It corrected lower below the 23.6% Fib retracement level of the upward move from the $1,724 swing low to $1,845 high.

Ether is now well above $1,750 and the 100 hourly simple moving average.  An initial support is near the $1,785 level. It is close to the 50% Fib retracement level of the upward move from the $1,724 swing low to $1,845 high.

Ethereum Price

Source: ETHUSD on TradingView.com

There is also a crucial breakout pattern forming with resistance near $1,840 on the hourly chart of ETH/USD. If ether price clears the triangle resistance and $1,850, there could be a strong increase. In the stated case, the price could rise towards the $1,900 and $1,920 resistance levels. The next major stop for the bulls could be $2,000.

Downside Break in ETH?

If Ethereum fails to continue higher above the $1,840 and $1,850 resistance levels, it could correct further lower. The first key support is near the $1,785 level.

The main support is now forming near the $1,750 level and the triangle lower trend line. If there is a downside break below the $1,750 support, ether price might decline towards the $1,725 level.

Technical Indicators

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

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

Major Support Level – $1,750

Major Resistance Level – $1,850

Via: https://www.newsbtc.com

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