ETH Extends Its Rise Above $1600 But Still Struggles: Analysis

ETH extends its rise above $1600 and traded to a new monthly high at $1655 before correcting lower against the dollar with the price still having a hard time staying above $1600 but it is likely to remain stable as long as above it stays above the 100 hourly SMA as we are reading more in our latest Ethereum news.

ETH extends its rise above the $1600 level and the $1625 resistance level with the price correcting below the $1600 and approaching the 100 hourly simple moving average with the major bullish trend line forming near the support at $1550 support on the hourly charts of the pair that could drop below $1550 or could start a new increase above $1620.

ETH extended its recovery wave as well and broke the $1625 resistance level and settled well above the 100 hourly moving average and then traded to a new monthly high of $1655 before starting a downside correction. There was also a break below the 23.6% fib retracement level from the upwards move at $1455 low to $1655 high while ETH is now correcting below the $1600 and approaching the 100 hourly simple moving average. The immediate support is near the $1555 with it closing the 50% fib retracement level of the upward moving from the $1455 low to $1655 low with the major bullish trend line forming the support at $1550 on the hourly chart of the pair.

On the upside, the price is having a hard time near the $1600 and the $1615 with a connecting bearish trend line that is forming near the $1610 on the chart. If it manages to break above the $1600 level there could be another increase with the next key resistance nearing the $1650 above which it could test the $1685. If ETH Fails to continue rising higher above the $1610 resistance level it could resume its decline with the initial support on the downside bearing the $1550 level.

The first major support is close to the $1450 zone and the 100 hourly SMA with the downside break below the $1550 and the $1540 levels that could open the doors for a move towards the $1500 level with the hourly MACD for the pair losing pace in the bullish zone and the hourly RSI is approaching the 50 level.