- ETH price started trading in a range after it failed to surpass the 5 resistance against the US Dollar.
- The price is currently trading below the key 0 and 5 resistance levels.
- There is a key contracting triangle forming with resistance near 0 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to make the next crucial move either above 0 or towards the 0 support.
Ethereum price is setting up for the next crucial break against the US Dollar and bitcoin. ETH may soon start a solid increase if it breaks the 0 and 5 resistances.
Ethereum Price Weekly Analysis
This past week, ETH tested the key 5 resistance area against the US Dollar. Earlier, the price formed a support base near the 0 level and started an upside correction. It broke the 5 and 0 resistance levels. Moreover, there was a break above the 23.6% Fib retracement level of the last major decline from the 5 high to 2 swing low.
However, the price struggled to break the 5 resistance area. Additionally, the 100 simple moving average (4-hours) acted as a strong resistance near 5. There was also no test the 50% Fib retracement level of the last major decline from the 5 high to 2 swing low. Recently, the price declined below the 0 level and it is currently trading in a crucial range.
It seems like there is a key contracting triangle forming with resistance near 0 on the 4-hours chart of ETH/USD. On the upside, there are major hurdles near the 0 and 5 levels. Therefore, a successful break above the 5 resistance area and the 100 SMA could open the doors for a larger upward move. The next key resistance for Ethereum is near the 8 and 0 levels.
Moreover, the 61.8% Fib retracement level of the last major decline from the 5 high to 2 swing low might prevent gains near 7. Conversely, the price could break the 0 support level to continue lower. The next key support area is near the 0 level. If there are more downsides, the price could revisit the 2 swing low.
The above chart indicates that Ethereum price is clearly setting up for the next crucial break either above 5 or below 0. As long as the price is trading below the 5 resistance and the 100 SMA, there are chances of a downside break in the near term.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
4 hours RSI – The RSI for ETH/USD is still well below the 50 level, with a flat structure.
Major Support Level – 0
Major Resistance Level – 5
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