Ethereum is trading nicely above the 2 and 0 support levels against the US Dollar. ETH price could start a strong rally if it clears the 0 and 5 resistance levels.
ETH price is showing positive signs above 0 pivot level against the US Dollar.
A strong support base is forming above 5 and the 100 simple moving average (4-hours).
There is a crucial contracting triangle forming with resistance near 0 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could start a strong rally if it breaks 0 and 5 in the near term.
Ethereum Price Eyeing Another Rally
This past week, Ethereum failed to clear the key 5 resistance area against the US Dollar. ETH price started a nasty decline and broke the key 2 and 0 support levels.
The price even spiked below the 5 level and the 100 simple moving average (4-hours). Ether tested a major support zone at 2, where the bulls took a strong stand.
A low is formed near 1 and the price started another upward move. It surpassed the 0 and 2 resistance levels. Besides, there was a break above the 50% Fib retracement level of the main drop from the 5 swing high to 1 swing low.
Ethereum is now trading above the 5 level and the 100 simple moving average (4-hours). It is facing a major resistance near the 0 level. There is also a crucial contracting triangle forming with resistance near 0 on the 4-hours chart of ETH/USD.
Ethereum Price
The triangle trend line coincides with the 76.4% Fib retracement level of the main drop from the 5 swing high to 1 swing low. If the bulls are able to clear the triangle resistance at 0, it could even surpass the main 5 resistance level.
A successful break above the 5 resistance zone may perhaps start a steady rise towards the 0 and 0 resistance levels. Any further gains might call for a test of the 0 resistance zone in the near term.
Bearish Break?
If Ethereum fails to continue above the 0 and 5 resistance levels, there are chances of anther drop in the near term. An initial support is near the 3 level and the 100 simple moving average (4-hours).
The main support is near the 0 level and the triangle support, below which the price is likely to accelerate lower towards the 2 support zone.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
4 hours 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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