Ethereum price surged more than 5% and broke the key 0 resistance area against the US Dollar. ETH traded as high as 7 and it is currently correcting gains.
Ethereum is showing a lot of positive signs and it recently climbed above 0 against the US Dollar.
The price remained well bid above the 0 support and the 100 hourly simple moving average.
There is a new bullish trend line forming with support near 2 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is still facing a strong resistance near the ,500 level.
Ethereum Price Targets 0
Yesterday, we discussed the importance of the 100 hourly simple moving average and 0 for Ethereum against the US Dollar. ETH price remained well bid above the 0 support and the 100 hourly simple moving average.
As a result, there was a fresh increase above the 5 resistance area. Moreover, there was a break above a connecting bearish trend line with resistance at 4 on the hourly chart of ETH/USD.
Ethereum Price
Finally, the bulls pumped the price above the 8 and 0 resistance levels. Overall, Ethereum gained more than 5%, while bitcoin price is still facing a strong resistance near the ,500 level.
A new yearly high was formed near 7 and ETH is currently correcting gains. It is testing the 23.6% Fib retracement level of the recent rally from the 0 swing low to 7 high.
On the upside, an initial resistance is near the 5 and 8 levels. A clear break above the 8 level could set the momentum for a test of the main 0 resistance area.
ETH Dips Supported
On the downside, there are many supports for Ethereum forming near the 8 and 0 levels. There is also a new bullish trend line forming with support near 2 on the same chart.
Furthermore, the 50% Fib retracement level of the recent rally from the 0 swing low to 7 high is also near the 8 level. Therefore, the price remains well supported on the downside near the 0 and 8 levels.
If the bulls fail to defend the 8 support level, there is a risk of a larger downside correction below 5. The main support for the current trend is now near the 0 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level, with a bearish angle.
Major Support Level – 8
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