- ETH price extended its recent upward move and tested the 2 resistance against the US Dollar.
- The price is struggling to gain bullish momentum above the 2 resistance area.
- There is a short term ascending channel forming with support near 8 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could decline a few points, but dips remain supported near 8, 5 and 2.
Ethereum price is showing positive signs above 5 versus the US Dollar, while bitcoin is up 5%. ETH price is likely to accelerate higher once it settles above the 2 resistance area.
Ethereum Price Analysis
Yesterday, there was a decent recovery initiated in ETH price above the 0 resistance against the US Dollar. More importantly, bitcoin price rallied and climbed above the ,500 and ,600 resistance levels (as discussed yesterday). It opened the doors for more gains and ETH/USD climbed above the 5 and 8 resistance levels. Moreover, there was a break above the 0 resistance and a close above the 100 hourly simple moving average.
However, Ethereum price seems to be facing a strong resistance near the 2 zone. The price made a few attempts to gain strength above 2, but it failed. At the moment, the price is consolidating near 0, with an immediate support near the 8 level. Moreover, the 23.6% Fib retracement level of the recent wave from the 4 low to 3 swing high might also act as a support.
Additionally, there is a short term ascending channel forming with support near 8 on the hourly chart of ETH/USD. Below the channel support, the next important support is near the 5 level. The 50% Fib retracement level of the recent wave from the 4 low to 3 swing high is also near 4 to act as a support. More importantly, the 100 hourly SMA is at 4 to provide support if Ethereum dips.
Therefore, the price could decline a few points, but dips remain supported near 8, 5 and 2. On the upside, the price must gain momentum above the 2 and 4 levels. A successful close above 5 might pump the price further higher towards the 0 and 5 levels.
Looking at the chart, Ethereum price is facing a major resistance near the 2 zone. If it continues to struggle, there could be a downside correction. Having said that, the bulls are likely to remain active near the 5 and 2 support levels. Only a close below 0 could negate the current bullish view.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower below the 60 level.
Major Support Level – 2
Major Resistance Level – 2
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