TA: Ethereum Holding Gains above $1,700, Why ETH Remains In Strong Uptrend

Ethereum traded to a new all-time high at $1,840 before correcting lower against the US Dollar. ETH price is holding the $1,700 level and it is likely to start a fresh increase.

Ethereum started a downside correction after trading to a new all-time high near $1,840.
The price is now trading nicely above $1,700 and the 100 hourly simple moving average.
There is a key contracting triangle forming with resistance near $1,760 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to start a fresh increase as long as it is above the $1,700 support zone.

Ethereum Price Steadies above $1,700

There were slow and steady moves in Ethereum above the $1,750 pivot level (unlike bitcoin). ETH even traded to a new all-time high near $1,840 before there was a downside correction.

The price traded below the $1,780 and $1,760 support levels. Ether price even spiked below the $1,700 level, but downsides were limited. It is now trading nicely above $1,700 and the 100 hourly simple moving average.

There was a recovery above the $1,730 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $1,840 high to $1,681 low. On the upside, the first key resistance is near the $1,760 level. There is also a key contracting triangle forming with resistance near $1,760 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The triangle resistance is near the 50% Fib retracement level of the recent decline from the $1,840 high to $1,681 low. A proper break above $1,760 might start a steady increase above $1,800. The next major resistance is near the $1,825 level. A close above the $1,825 level could pump the price towards the $1,900 and $1,920 levels in the short-term.

Dips Supported in ETH?

If Ethereum fails to clear the $1,760 and $1,800 resistance levels, it could correct lower. On the downside, the first major support is near the $1,715 level and the triangle lower trend line.

The main support is near the $1,700 zone and the 100 hourly simple moving average. A close below the 100 hourly SMA may possibly start a major downside correction towards $1,600 or even $1,550.