Ethereum regains strength, possibly indicating the beginnings of a new rally

Nonhlanhla Dlodlo · Staff Writer

5 Jul 2022 · Updated 5 Jul 2022 · 1 min read

After remaining stable near R16 435 versus the US dollar, Ethereum began a new uptrend. ETH could surge beyond the R18.9K resistance level.

Ethereum price continues rising

Ethereum stayed stable above the R16 435 level, with no downside break. As a result, a base was formed, and the price began to rise steadily.

The price was able to overcome a couple of significant resistance levels near R17.5K. On the hourly chart of ETH/USD, there was a break above a significant contracting triangle with resistance near R17.6K. The price even approached the 61.8 % Fib retracement line of the pivotal drop from the R20K swing high to the R16 386 low.

The price of ether reached R19K, considerably above the 100-hourly simple moving average. It is also significantly higher than the 23.6 % Fib retracement line of the recent rise from the R16.8K swing low to the R19K high.

Ethereum Cost

On the upside, immediate resistance is approaching R18.9K. The next major resistance is in the R19K area, above which the price may test the R19.7K level. In the aforementioned scenario, the price could move toward the R20.5K resistance. Any further advances could push the price up to the R21K mark.

A New Drop in ETH?

If Ethereum fails to break over the R18.9K resistance level, it may begin a downward trend. On the downside, initial support is near R18K.

The next significant support is near R17.9K and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the latest rise from the R16.8K swing low to the R19K high. A fall below the R17.9K support level may put pressure on the bulls in the short term. The next significant support level is R17K.