Ethereum Breaks above $900
Like other cryptocurrencies, including bitcoin, Ethereum is mounting a bit of a comeback. The ETH/USD market has pushed higher and is back above a former key support turned resistance level at $900.
There has been a renewed recovery and push higher in this market. This recovery started near the technical support level at $820, which is now the swing low. Price action moved higher breaking above a technical resistance layer, now support at $860 then the level at $890. The most important aspect of this recovery is that Ethereum broke above a key resistance cluster zone that ranged from $895 to $900. Price is now challenging the resistance level that lines up at $920. Please refer to the below chart.
Key support levels that traders should watch highlight this bullish trend. The support at $860 is holding. The key $900 support level is recast and back in play as a key psychological and trend changing level. Any breaks lower should be capped at this support level in the near term. Two other key support levels are at $870 then the rising trend level support at $860. As long as price remains above the latter level, the current upswing is on.
Looking back towards the upside in this cryptocurrency market, there is a key technical resistance level in play at $920. A daily close above this resistance barrier will challenge the next upside barrier that lines up at $950.
Keep in mind to watch the key downside barriers that line up at $900, $870 and $860 especially with the latest strong inflation numbers sending Treasuries higher. This, in theory should support a stronger dollar limiting Ethereum’s recovery in the short term.