Ethereum might start a new rally as all indications show a correction from the $1,633 level. The ETH/USD exchange rate has been well supported above the $1,480 level for some time now.
Ethereum is currently in a consolidation phase, with prices consolidating below the $1,600 resistance zone. The price of ETH is now trading above $1,500 and past the 100 hourly simple moving average.
The long-term picture for Ether is very encouraging, with a major bullish trend line forming with support near $1,480 on the hourly chart. With a clear move above $1,600, the price may continue to surge.
Ethereum extended its rally today, moving above the $1,500 level. The cryptocurrency cleared the $1,550 resistance zone and is currently moving into positive territory.
It seems that the price is indeed finding some strength again. It recently settled well above $1,600 and even peaked at over the 100-hourly simple moving average.
Ether price faced buying pressure near the $1,600 support zone before there was a downside correction. Later on, sellers emerged and pushed prices down towards an important resistance level at around the $1,550 support zone.
Besides, there is a major bullish trend line forming with support near $1,480 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the upward move from the $1,325 swing low to the $1,633 high. Immediate resistance on the upside is near the $1,600 level.
The first major resistance is near the $1,630 zone. A clear move above this level could start another powerful upsurge in prices. The next key barrier is near the $1,700 level. This may be where buyers can take strength out of sellers and drive up prices towards the resistance zone at $1,800.
But if the reverse happens, i.e if the price fails to rise above the $1,600 resistance, this could trigger a downward trend. The first significant support would be the $1,520 zone, followed by the $1,480 zone and the trend line.
If the price keeps falling further below these levels ETH could test the $1,450 support and even drop as far as below the $1,400 level or the 100 hourly simple moving average.