Ethereum traded to a new monthly high near 9 before correcting lower against the US Dollar. ETH price is currently trading nicely above 3 and it could rally again towards 0.
- ETH price is holding the main 5 support level and the 2 pivot level against the US Dollar.
- It is facing a couple of important hurdles near 0 and 0.
- There is a crucial contracting triangle forming with resistance near 2 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could rally again above 5 as long as it is above the 100 simple moving average (4-hours).
Ethereum Price Holding Key Supports
This past week, Ethereum extended its rise above the 0 resistance against the US Dollar. ETH price traded close to the 0 resistance level and settled well above the 100 simple moving average (4-hours).
Ether traded as high as 9 and started a fresh downside correction (similar to bitcoin). There was a break below the 2 and 0 support levels, but the 5 support zone acted as a strong buy region.
The price is currently rising and trading above the 23.6% Fib retracement level of the downside correction from the 9 swing high to 5 low. It is currently facing a strong resistance near the 0-2 region.
Ethereum price trades above 5. Source: TradingView.com
There is also a crucial contracting triangle forming with resistance near 2 on the 4-hours chart of ETH/USD. The triangle resistance coincides with the 50% Fib retracement level of the downside correction from the 9 swing high to 5 low.
If there is a successful break above the triangle resistance at 2, the price is likely to start a fresh increase. The main resistance on the upside is still near the 0 level, above which the price could start a strong rally towards 2 and 5.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the 0 and 2 resistance levels, there are chances of a downside break. The first major support is near the triangle lower trend line at 8.
The mains support is near the 5 level and the 100 simple moving average (4-hours), below which the price could dive sharply towards the $0 support area.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently just above the 50 level.
Major Support Level – 5
Major Resistance Level – 2
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