Ethereum is up more than 8% and it broke the key 5 resistance zone against the US Dollar. ETH price is trading nicely above 0 and it could continue to rise above 0.
Ethereum is showing a lot of positive signs and it rallied above 5 and 0.
The price is likely to continue higher towards the 0 and 0 levels.
There is a connecting bullish trend line forming with support near 2 on the hourly chart of ETH/USD (data feed via Kraken).
The pair remains well supported on dips near 5 and 2 in the near term.
Ethereum Price Surging
Ethereum price remained in a strong uptrend above the 5 level and it gained pace above the 0 barrier. ETH price managed to surpass the main 5 resistance zone to move into a bullish zone.
There was also a close above the 5 level and the 100 hourly simple moving average. Ether traded as high as 5 and it is currently consolidating gains. It tested the 23.6% Fib retracement level of the recent rally from the 4 swing low to 4 high.
The first major support on the downside is near the 5 zone. It is close to the 50% Fib retracement level of the recent rally from the 4 swing low to 4 high.
More importantly, there is a connecting bullish trend line forming with support near 2 on the hourly chart of ETH/USD. On the upside, the price is likely to continue higher above the 4 and 5 levels.
Ethereum Price
The first major resistance is near the 0 level. If there is a clear break above the 0 level, the price is likely to accelerate higher towards the 0 level. Any further gains could lead the price towards the 0 level.
Dips Supported in ETH
If Ethereum starts a downside correction, it is likely to remains supported near the 5 support zone (the recent breakout area). The trend line support at 2 is also a major support.
If there is a downside break below the 2 support zone, the price is likely to test the main 0 support and the 100 hourly simple moving average, which is also a key breakdown area.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level, with a positive angle.
Major Support Level – 5
Major Resistance Level – 5
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
NewsBTC