ETH Needs To Surpass $605 If It Wants To Start A New Rally

ETH needs to surpass the $605 level as it is now consolidating in a contracting range above $565 against the US Dollar. The coin has to surpass this level in order to start a new rally higher as we are reading more about the analysis in today’s Ethereum price news.

ETH price found support near the $565 level and started recovering against the US dollar. The price now trades at $580 and the 100 simple moving average with a major contracting triangle forming with the resistance of $602 on the 4-hour charts of the pair. The pair will be able to increase sharply to the $600 level or higher if it manages to surpass the $605 resistance. Over the past week, BTC and ETH saw minor downside correction against the US dollar and Ethereum even peaked below $572 but remained stable above the 100 simple moving average.

The $565 support zone was a strong barrier for the bears and a new swing low was formed near the $561 where the price started a fresh upward move. ETH climbed higher and it broke the 50% fib retracement level from the downside reaction of the $625 swing high to $561 low. ETH needs to surpass the $605 as it is slowly approaching a major resistance near the $600 level with a major contracting triangle forming at $602 on the 4-hour charts of the pair.

The triangle resistance is closer to the 61.8% fib retracement level from the downside reaction of the $625 swing high to $561 swing low. breaking above the triangle resistance and the $605 is needed to make a strong increase again with next major resistance at $620 above which the price will be able to shoot above the $636 yearly high. If ETH fails to clear the $600 and the $605 resistance level, there’s a risk of a bearish reaction with initial support near the $592 level. The first support zone is near the $590 level and a triangle lower trend line with a downside break below the support that could lead the price at $565 support. The 4-hour MACD for the pair is losing momentum in the bullish zone while the RSI for the pair is at the 50 levels.