Ethereum is currently correcting lower from the 6 monthly high against the US Dollar. ETH price remains well supported on the downside near the 2 and 8 levels.
Ethereum is correcting lower and trading below the 0 level against the US Dollar, similar to bitcoin.
The price is holding the main 2 and 8 support levels.
There is a key contracting triangle forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rally again towards 0 as long as there is no close below the 8 support.
Ethereum Price Remains in Uptrend
Yesterday, we saw a sharp rise in Ethereum above the 0 and 0 levels against the US Dollar. However, ETH price struggled to clear the 5 resistance and the 100-day simple moving average (as discussed in yesterday’s analysis).
A new monthly high is formed near the 6 level and the price recently corrected lower. It broke the 0 level to start the correction. There was a break below the 23.6% Fib retracement level of the upward move from the 0 swing low to 6 high.
On the downside, the 2 level is acting as a strong support and Ethereum is trading well above the 100 hourly simple moving average. There is also a key contracting triangle forming with resistance near 0 on the hourly chart of ETH/USD.
Ethereum Price
If there is an upside break above the triangle resistance and 0, the price is likely to restart its rise. An immediate resistance is near the 5 level, above which the price could surge towards the 0 level. Any further gains could lead the price towards the 8 level.
Key Buy Zones
On the downside, Ethereum is likely to remain well supported above the 2 levels. The next major support is near the 8 level. It coincides with the 50% Fib retracement level of the upward move from the 0 swing low to 6 high.
The 100 hourly simple moving average is also near the 5 level to act as a strong support. If the price fails to stay above the 8 support and the 100 hourly SMA, it could extend its decline towards the 0 and 4 levels in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently declining and approaching the 50 level.
Major Support Level – 0
Major Resistance Level – 5
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