Ethereum recently broke several key barriers to trade a new all-time high of $1,765. The largest altcoins have been in this upward trend since early January. Despite retreating from record highs, Ethereum appears to have the potential to overcome resistance at $1,700 and $1,765 and take off to new highs above $2,000.
At the time of writing, Ethereum is trading hands for just under $1,600. The overhead pressure appears to be increasing below this level which could see Ethereum fall to confirm next at $1,500.
ETH/USD 4-hour chart
The 50 Simple Moving Average is useful and prevents Ether from falling further after dropping from recent highs. A thorough look at the Moving Average Convergence Divergence (MACD) shows that the path of least resistance is downwards, at least for now.
The MACD line has crossed below the signal line, indicating that the resistance has gained more influence on the price. If the divergence between these two lines continues to widen, Ethereum is likely to drop to $1,500 and possibly retest the 100 SMA support near $1,400 before resuming the uptrend.
On the upside, closing the day above $1,600 would be a very big bullish signal. Price moves will prompt more buy orders from investors as bulls increase their positions while anticipating a breakout above $2,000.
Spot rate: $1,588
Relative change: -30
Percentage change: -1.85%
Support one: $1,500
Support two: $1,400
Resistance one: $1,600
Resistance two: 1.765