Ethereum bulls keep pushing - Why $1,720 is the key for fresh rally?

Ethereum started a steady recovery above the $1,600 level against the US Dollar. ETH price is now facing a major resistance near $1,700 and $1,700.

Ethereum price is facing resistance

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

There was a spike above the $1,700 level, but the bulls fail to gain strength. A high was formed near $1,720 and the price corrected lower. There was a break below the 23.6% Fib retracement level of the upward move from the $1,430 swing low to $1,720 high.

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

Ethereum Price
Source: ETHUSD on TradingView.com

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

If there is a clear break above $1,700 and $1,720, ether price could start a steady increase. The next major resistance on the upside sits near the $1,800 level.

Fresh dip in ETH?

If Ethereum fails to continue higher above the $1,700 and $1,720 resistance levels, there could be a fresh decline. An initial support on the downside is near the $1,575 level.

There is also a connecting bullish trend line forming with support near $1,575 on the same chart. If there is a downside break below the trend line support, there could be a sharp decline towards $1,500 or even $1,450.

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TimeBit/Source: Decrypto

*The article is for information purposes and market analysis only, not an article that encourages investment. You should do your own research before making any investment decisions. Crypto, Forex news updated 24/7 on our social media channels: Follow us at TimeBit and Telegram Timebit-Cryptonews.