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October 5, 2022
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Why $ 1,720 is the key to a new Ethereum Bull rally

Summary

  1. Ethereum formed a decent support base over $ 1,550 and rebounded over $ 1,650.
  2. The price is still trading below the $ 1,700 resistance and the 100-hour simple moving average.
  3. There was a break above a key decline channel with resistance close to $ 1,620 in the ETH / USD hourly chart (data feed via Kraken).
  4. The pair could start a strong increase if there is a clear break above $ 1,700 and $ 1,720.

Ethereum (ETH) price faces resistance

Ethereum remained strong above the $ 1,500 level and recovered well above $ 1,600. ETH even settled above the $ 1,600 level, similar to bitcoin above $ 50,000.

There was a peak above the $ 1,700 level, but the bulls failed to gain strength. A high was formed near $ 1,720 and the price corrected downwards. There was a break below the 23.6% Fibonacci (Fib) retracement level of the upward movement from $ 1,430 on the swing low to $ 1,720 on the high.

However, the price of Ethereum remained stable above the $ 1,575 level. The 50% Fib retracement level of the upward movement from $ 1,430 on the swing low to $ 1,720 on the high also provided support.

Source: ETHUSD at TradingView.com

The price is rising again above the $ 1,600 level. There was a break above a main channel of decline with resistance close to $ 1,620 on the hourly ETH / USD chart. The first major resistance is close to the $ 1,700 level. The main resistance is now forming near the $ 1,720 level and the 100-hour simple moving average.

If there is a clear break above $ 1,700 and $ 1,720, the price of Ethereum may start to rise steadily. The next great resistance positive is close to the $ 1,800 level.

Can Ethereum decline?

If Ethereum does not continue higher above the $ 1,700 and $ 1,720 resistance levels, there may be a further decline. Initial support on the negative side is close to the $ 1,575 level.

There is also a connected bullish trend forming with support close to $ 1,575 on the same chart. If there is a break below the trendline support, there could be a sharp drop to $ 1,500 or even $ 1,450.

Technical Indicators

Hourly MACD – The ETH / USD MACD is struggling to gain momentum in the bullish zone.

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

Main support level – $ 1,575

Main resistance level – $ 1,720

Source: NewsBTC

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