Ethereum holds steady beneath $1,650 as the bulls prepare for another charge

Ethereum soared to new heights, rising above the $1,620 mark against the US dollar. The digital currency is now consolidating its gains and appears poised for another upward surge, with potential targets set at the $1,720 level.

In summary

• After reaching new heights at the $1,655 and $1,665 resistance levels, it is now experiencing a correction phase. 
• It’s still trading above the $1,600 mark and the 100-hourly moving average, providing a solid foundation for further growth. 
• Unfortunately, the bullish trendline that had previously served as a lifeline for traders, offering support at the $1,630 mark on the hourly chart of ETH/USD (data feed via Kraken), was unfortunately breached. Nonetheless, if Ethereum stays above the $1,600 support zone, it could rally again.

Slow but steady rise

Ethereum began a steady ascent, rising above the $1,500 resistance zone. The digital currency picked up momentum and broke through the $1,600 resistance barrier, much like Bitcoin, as it reached the $22,000 mark.

⚡️New : @glassnode data : Ethereum $ETH Percent Addresses in Profit (7d MA) just reached a 5-month high of 60.713%.#AlphaInsights pic.twitter.com/zWJueWz09m

— Alpha Insights (@0xAlphaInsights) January 22, 2023

The bulls took charge, pushing Ethereum’s value above the $1,650 level and establishing it firmly above the 100 hourly simple moving average. 

A new yearly high was reached at around $1,679, but the price has since retreated in a correction phase. Though there was a slight dip below the $1,650 level, the overall trend remains positive.

Some resistance 

Ethereum’s value dipped, falling below the 23.6% Fibonacci retracement level of the upward trajectory from the $1,480 low to the recent peak of $1,679. Unfortunately, the bullish trend line that had previously served as a source of support at $1,630 on the hourly chart of ETH/USD was breached. 

Despite this, the value of Ethereum is currently trading above $1,600 and the 100 hourly moving average, providing some hope for bulls in the market.

In the short term, there is an immediate resistance level of around $1,650 and the previously broken trend line.

The price faces a significant resistance level at $1,680. 

Some predictions

A successful breakout above this level could trigger a new upward surge, potentially pushing the price toward the $1,720 resistance. If the momentum continues, the value of Ethereum may reach new heights, possibly climbing to $1,788 or even $1,800 in the near future.

If Ethereum fails to break through the $1,650 resistance, it may be faced with a steady descent. The first line of defense on the downside is around the $1,600 level, which could potentially provide support. 

Should the market take a dip, the $1,580 level may serve as a cushion, acting as a lifeline for traders as it coincides with the 50% Fibonacci retracement of the recent bullish run from the $1,480 low to the $1,679 peak. 

However, should this support fail to hold, the price may plummet to the next level of defense at $1,520. A breach of this barrier may lead to a freefall toward the $1,480 mark.

Key takeaways

• Hourly MACD for ETH/USD  –  shows signs of slowing down in the bearish territory, signaling a potential loss of steam for the bears.
• Hourly RSI for ETH/USD – currently perched above the halfway mark, indicating a bullish sentiment among traders.
• Major Support Level – $1,580
• Major Resistance Level – $1,650