Ethereum surged close to 20% and climbed above the 0 resistance against the US Dollar. However, ETH price is struggling to gain momentum above the 100-day simple moving average.
Ethereum is up close to 20% and it broke the 5 and 5 resistance levels against the US Dollar.
The price even tested the 5 resistance and the 100-day simple moving average.
There is a crucial bearish trend line forming with resistance near 2 on the daily chart of ETH/USD (data feed via Kraken).
The pair must climb above the 0 resistance and the 100-day SMA to move into a larger uptrend.
Ethereum Price Jumps Significantly
In the past few sessions, there was a sharp increase in Ethereum above the 0 resistance (as discussed yesterday) against the US Dollar. ETH price outpaced bitcoin and rallied close to 20% to trade above the 5 resistance.
During the rise, there was a clear break above the 5 resistance. The price even climbed above the 23.6% Fib retracement level of the last major decline from the 2 high to swing low.
The price traded above the 0 level, but it seems like it is facing a strong resistance near the 5 level and the 100-day simple moving average. The 50% Fib retracement level of the last major decline from the 2 high to swing low is also acting as a resistance.
More importantly, there is a crucial bearish trend line forming with resistance near 2 on the daily chart of ETH/USD. If Ethereum succeeds in clearing the 5 and 2 resistance levels, it could move into a medium term uptrend.
Ethereum Price
The next key resistance is near the 0 level, above which the bulls are likely to aim a test of the 0 barrier. Any further gains could lead the price towards the 0 level in the near term.
Rejection Near 5-0?
If Ethereum fails to clear the 5 and 0 resistance levels, it could correct lower. An initial support on the downside is near the 0 level.
The first major support is now near the 0 level and a connecting bullish trend line on the same chart. A successful daily close below the 0 support level could start another decline. The next key support is seen near the 4 level.
Technical Indicators
Daily MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Daily RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – 0
Major Resistance Level – 0
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