Ethereum is gaining pace above the $565 and $575 levels against the US Dollar. ETH price surpassed $580 and it seems like the bulls are aiming a test of $600 in the near term.

In the weekly analysis, we discussed the chances of a short-term correction in Ethereum below $550. ETH did correct lower, but dips remained well bid near the $520 and $530 levels.

The price started a fresh increase and climbed back above the $540 resistance level. There was also a break above a connecting bearish trend line with resistance near $542 on the hourly chart of ETH/USD. Ether price even surpassed the $560 resistance level and settled above the 100 hourly simple moving average.

The price is up over 8% and it broke the $580 resistance. A new multi-month high is formed near $586 and the price is trading nicely in a positive zone. An initial support is near the $578 level. It is close to the recent breakout zone and the 23.6% Fib retracement level of the recent wave from the $451 low to $586 high.

The next major support is near the $570 level or the 50% Fib retracement level of the recent wave from the $451 low to $586 high. On the upside, the $585 level is a short-term resistance. A clear break above $585 and the recent high could set the stage for a move towards the $600 barrier in the coming sessions. Any further gains could lead ether towards the $625 level.

If ethereum fails to break the $585 level, there could be a minor correction. The first major support below $578 is near the $470 level.

The main support is now forming near the $560 level (a multi-touch zone). A successful close below the $560 support level could lead ether price towards the $540 support and a connecting bullish trend line on the same chart.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is well above the 50 level.

Major Support Level – $570

Major Resistance Level – $585

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