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Ethereum Price Analysis: ETH/USD Establishes Strong Resistance at $560 & Can Touch $600 Level

Ethereum price is generally up 1.3% over the past 24 hours, though it has dipped by 0.02% over the past few hours. The 61.8% Fibonacci indicates that a stronger support has been established above the $560 mark.

The Ethereum price has now extended its gain so far this week and is within touching distance of the $580 resistance. The 50 SMA is a breakout on the upside near the $590 zone, with a break past this mark most likely paving the way for further gains above the $600 mark.

Its 38.2% Fib retracement level with the last high leg at $642 and a low of $511 crosses path the 50 SMA, which implies that the $590 mark is a significant resistance. $580, which was the previous resistance level offers the currency a short-term support in case of a price reversal.

The short-term contracting triangle has its support set at 572%, with the 200 SMA having another support area at $570. In addition to all these, the 61.8% Fibonacci has shown a much stronger support just above the $560 mark. If the currency can make a run for the $590 mark, then it will probably test the $600 level, if successful.

The Technical Confluence Indicator indicates that the price of Ethereum has a very strong support at $576 at the moment. This indicator is a combination of the Fibonacci 23.6% one-day, the Simple Moving Average 50-15m, the Bollinger Band 1h-Middle, the Simple Moving Average 10-1h, the Fibonacci 23.6% one-month, and the Bolinger Band 15m Lower.

Ethereum has fallen over this level over the past few hours, thus it will have to work its way through some few convergence points. Failure to bounce back again will see it dip to the $547 mark, which is the converging point of the one-month low and the one-week low.

On the upside, it has established a weak resistance at $589, which is a converging point of the Bolinger Band 15m-Upper, the BB 1h-Upper, and the Fibonacci 23.6% one-week. The next strong resistance is at $629, and it is the meeting point of the Simple Moving Average 100-4h and the Fibonacci 38.2% one-month converge.

For Ethereum price, it is easier to move up rather than down.

The dip in the price of Ethereum is due to a general slump in the general cryptocurrency market, with Bitcoin also slipping to the $7,300 region before recovering to now trade above $7,400. Ethereum price might also face some challenges in the coming days, with the EOS MainNet set to launch in a few hours and the network is expected to provide tough competition for Ethereum.

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Nicholas Holden

A chemical engineer who got obsessed with cryptocurrecnies. Holds small fortune in BTC, PVX and MIOTA. Nick's regular trading in the crypto space makes him come across exclusive news around the industry. Email: nick@blockpublisher.com or email the editor at editor.news@blockpublisher.com

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