Ethereum rallied more than 5% and broke the 0 resistance against the US Dollar. ETH price retreated sharply from 5, but technicals suggest uptrend remains intact above 0.
- ETH price surged above the 0 and 0 resistance levels against the US Dollar.
- There was a strong bearish reaction from the 5 level and the price dumped more than .
- There are two key bullish trend lines forming with support near 5 and 0 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to recover and rise above 0 as long as it is trading above 0.
Ethereum Price is Correcting Gains
In the past few days, there was a strong increase in Ethereum above the 0 and 0 levels against the US Dollar. ETH price even broke the 0 resistance and settled well above the 100 simple moving average (4-hours).
The upward move was strong and ether surged above the 0 and 0 levels. The price traded to a new multi-moth high near the 5 level and it is currently correcting lower. There was a sharp bearish reaction from the 5 swing high and the price dropped more than .
There was a huge spike below the 0 support level. The price even dumped below the 50% Fib retracement level of the recent surge from the 6 swing low to 5 high. However, ether remained well bid near the 0 support level and the 100 simple moving average (4-hours).
Ethereum price trades above 0. Source: TradingView.com
It traded close to the 1.236 Fib extension level of the recent surge from the 6 swing low to 5 high. More importantly, there are two key bullish trend lines forming with support near 5 and 0 on the 4-hours chart of ETH/USD.
The pair is currently recovering and it is back above the 0 level. An initial resistance is near the 0 level, above which the bulls may perhaps push the price above 0. A daily close above the 0 level could lead the price towards the 0 and 2 levels in the coming days.
Downsides Limited in Ether (ETH)?
If Ethereum remains below the 0 and 0 resistance levels, there could be more downsides. The first major support is near the 0 level, below which the price might struggle in the short term.
The next major support is near the 5 and 0 levels (the recent breakout zone), below which the bears are likely to target an extended correction towards the 0 support level.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – 0
Major Resistance Level – 0