Ethereum Likely To Smash $500, As Bulls Take Over The Crypto Market
Ethereum started a strong increase above $470, similar to bitcoin above $17.5K against the US Dollar. ETH price is trading above $490 and it is likely to surge above $500.
- Ethereum is trading with a strong bullish momentum above the $470 and $485 support levels.
- The price is approaching the $500 barrier and it is above the 100 hourly simple moving average.
- There is a connecting bullish trend line forming with support near $482 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally further if there is a clear break and close above $500.
Ethereum Price is Approaching $500
Ethereum gained bullish momentum after there was a close above $470 level. ETH price broke the $480 and $485 resistance levels. There was a strong rise in bitcoin and it even cleared $18k, resulting in a push above $490 in ether.
The price traded as high as $495 and it is above the 100 hourly simple moving average. Ether is currently consolidating gains, with an immediate support near $491. It is close to the 23.6% Fib retracement level of the recent rally from the $476 swing low $495 high.
The next major support for ethereum is near the $486 level. It is a multi-touch zone and coincides with the 50% Fib retracement level of the recent rally from the $476 swing low $495 high.
Source: ETHUSD on TradingView.com
More importantly, there is a connecting bullish trend line forming with support near $482 on the hourly chart of ETH/USD. On the upside, the $495 level is an initial resistance. The main hurdle is now at $500. A clear break above the $500 resistance zone could spark another 5% rally. The next stop for the bulls may perhaps be $525 or even $540 in the coming sessions.
Downsides Limited in ETH?
If there is no upside break above the $495 and $500 resistance levels, ethereum might correct a few points. The first key support is near the $485-$486 zone.
The main support is now forming near the $480 level and the bullish trend line. Any more losses could lead the price towards the $465 support level and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is gaining a strong momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 65 level.
Major Support Level – $480
Major Resistance Level – $500