Ethereum gained bullish momentum above the 0 resistance against the US Dollar. ETH price is currently correcting gains, but it is likely to resume its upside above 5.
- Ethereum settled above the 5 resistance and it climbed above the 2 resistance.
- The price traded as high as 7 and it is currently correcting lower.
- There was a break below a short-term bullish trend line with support near 5 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise as long as it is above the 2 and 0 support levels.
Ethereum Price Turns Green
Yesterday, Ethereum saw a strong rise in buying interest above 5 against the US Dollar. ETH price settled above the 5 resistance and it climbed above the 2 resistance.
The price traded as high as 7 and settled above the 100 hourly simple moving average. Recently, it started a downside correction below the 5 level. There was also a break below a short-term bullish trend line with support near 5 on the hourly chart of ETH/USD.
The pair is now testing the 23.6% Fib retracement level of the upward move from the 4 swing low 7 high. An immediate support is near the 2 level (the recent breakout zone).
Ethereum price trades above 2. Source: TradingView.com
If ether price breaks the 2 support, it could extend its correction towards the 0 support. The 50% Fib retracement level of the upward move from the 4 swing low 7 high is also near the 0 support zone along with the 100 hourly simple moving average.
On the upside, the price is facing a couple of short-term hurdles near 5 and 8. The main hurdle is near the 0 level, above which ether is likely to accelerate higher towards the 8 and 2 levels.
Bearish Move in ETH?
On the downside, there is a crucial support forming near the 0 level and the 100 hourly simple moving average. A close below the 0 support might push the price back into a bearish zone.
The next major support is near the weekly pivot level at 5, below which the price is likely to accelerate lower towards the 0 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – 0
Major Resistance Level – 8
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