Key Highlights
- ETH price stayed above the 6 support and later recovered against the US Dollar.
- There is a connecting bearish trend line formed with resistance at 4 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could climb quickly if buyers clear the 4 and 5 resistance levels in the near term.
Ethereum price is placed nicely above key supports against the US Dollar and bitcoin. ETH/USD is likely to slowly move higher as long as it is above 6.
Ethereum Price Analysis
After testing the 9-160 resistance, ETH price started a downside correction against the US Dollar. The ETH/USD pair declined below the 6, 5 and 0 support levels. There was a test of the 6 support area, where buyers emerged. Later, the price started a fresh upward move and traded above the 0 level. There was a break above the 2 level and the 100 hourly simple moving average. Moreover, the price cleared the 23.6% Fib retracement level of the recent decline from the 0 high to 6 low.
However, there is a strong resistance formed near 4-155. Besides, there is a connecting bearish trend line formed with resistance at 4 on the hourly chart of ETH/USD. An initial resistance is near the 3 zone. It represents the 50% Fib retracement level of the recent decline from the 0 high to 6 low. If there is a break above the 3 and 4 resistance levels, the price may climb towards the 7 level. It is close to the 6.50 pivot level and the 76.4% Fib retracement level of the recent decline.
Looking at the chart, ETH price is clearly holding the 6 support very well. In the short term, there could be range moves above 6 and 8 before an upside break. A proper close above 4 and 7 is needed for an upside acceleration. On the downside, the main supports are 0 and 6.
Hourly MACD – The MACD for ETH/USD is back in the bullish zone, suggesting a nice upward move.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a flat bias.
Major Support Level – 6
Major Resistance Level – 4
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