Ethereum (ETH) Forms Bullish Continuation Setup, Can The Bulls Take Over?

Ethereum’s ETH started a major increase above the $1,400 and $1,500 levels. It is now consolidating and seems to be aiming more gains above $1,600.

Ethereum (ETH) Price Could Extend Rally

This past week, ethereum climbed above the $1,125 resistance level against the US Dollar. The ETH/USD pair gained pace for a move above the $1,200 level and the 50 simple moving average (4-hours, blue).

It opened the doors for a strong increase above the $1,275 and $1,315 resistance levels. Ether price gained over 20% and even surpassed the $1,500 resistance zone. A high was formed near $1,630 and the price started a consolidation phase.

Etheruem’s 4-hours price chart | Source: ETHUSD on TradingView.com

There was a minor drop below the $1,580 and $1,560 levels. The price even traded close to the 23.6% Fib retracement level of the recent increase from the $1,005 swing low to $1,630 high.

The price is now trading in a bullish continuation pattern with resistance near $1,560 on the 4-hours chart. A clear move above the $1,560 resistance could send the price towards the $1,600 resistance.

The next major resistance is near the $1,630 level. Any more gains might open the doors for a move towards the $1,700 resistance, above which the bulls may perhaps aim a move towards the $1,800 level in the near term.

Dips Limited?

Conversely, ETH price might fail to clear the $1,560 resistance zone or $1,600. In the mentioned case, the price could start a downside correction below the triangle at $1,520.

The next major support is near $1,385, below which the price could slide towards the $1,320 level. It coincides with the 50% Fib retracement level of the recent increase from the $1,005 swing low to $1,630 high. A close below $1,320 may perhaps call for a test of $1,200.

Overall, ether price is eyeing an upside break above the $1,560 resistance zone. If the bulls succeed, the price could accelerate higher towards the $1,700 resistance zone or even $1,800 in the coming days. Conversely, there might be a downside correction towards the $1,320 support zone.