TA: Ethereum Just Reversed, and $1,600 is Imminent; here’s Why

Aayush Jindal
30 Aug, 2022

Ethereum started a strong recovery from the $1,425 zone against the US Dollar. ETH is back above $1,500 and might rise further towards the $1,600 resistance.

Ethereum remained well supported above the $1,425 zone. The price now trades above $1,500 and the 100 hourly simple moving average.

There was a break above a key bearish trend line with resistance near $1,485 on the hourly chart of ETH/USD (data feed via Kraken). The pair is eyeing more gains above the $1,560 and $1,565 resistance levels.

Ethereum Price Starts Recovery

Ethereum found support near the $1,425 zone after a substantial decline. ETH formed a base above the $1,425 and $1,440 levels and recently started an upside correction.

There was a clear move above the $1,500 resistance zone. Besides, there was a break above a key bearish trend line with resistance near $1,485 on the hourly chart of ETH/USD. The pair climbed above the $1,520 and 100 hourly simple moving average.

There was a clear move above the 23.6% Fib retracement level of the key drop from the $1,707 swing high to the $1,423 low. Ether's price is now trading above $1,500 and the 100 hourly simple moving average.

It is facing resistance near the $1,560 and $1,565 levels. The stated resistance is near the 50% Fib retracement level of the vital drop from the $1,707 swing high to the $1,423 low.

The next significant resistance is now forming near the $1,600 level. A clear move above the $1,600 level might send the price towards $1,640 resistance. Any more gains may open the doors for a test of the $1,700 resistance soon.

Fresh Decline in ETH?

If Ethereum fails to rise above the $1,565 resistance, it could start another decline. Initial support on the downside is near the $1,530 zone and the 100 hourly simple moving average.

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The next major support is near $1,490, below which ether price gains bearish momentum. The price may decline towards the $1,450 level in the stated case. Any more losses may send the price towards the $1,425 zone or the last swing low. - newsbtc

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