Ethereum corrected lower below 0, but it remained stable above 5 against the US Dollar. ETH price is likely to gain momentum if it clears the 0 resistance zone.
- Ethereum is holding the ground above the 0 and 5 support levels.
- The price is showing positive signs above the 0 support and the 100 hourly simple moving average.
- There is a key connecting bullish trend line forming with support near 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise steadily towards 0 or 5 as long as it is above the trend line support.
Ethereum Price is Showing Positive Signs
After forming yet another top near the 0 resistance, Ethereum started a downside correction. ETH price traded below the 0 support level. It even spiked below the 0 support, but the bulls managed to protect the 5 zone.
A swing low is formed near 5 and the price is currently rising. There was a break above the 0 and 2 levels. Ether price even climbed above the 50% Fib retracement level of the recent decline from the 9 swing high to 5 swing low.
Moreover, there is a key connecting bullish trend line forming with support near 0 on the hourly chart of ETH/USD. Ethereum price is now facing hurdles near the 0 level, but it is well above the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
The 61.8% Fib retracement level of the recent decline from the 9 swing high to 5 swing low is also acting as a hurdle. A clear break above the 0 resistance could easily take the price towards the 0 resistance. Any further gains might call for a move towards the 0 and 5 levels.
Downsides Limited in ETH?
On the downside, the trend line support at 0 and the 100 hourly SMA are important supports for the bulls. If they fail to keep ethereum price above the 100 hourly SMA, there is a risk of more losses below the 5 low.
The next major support is near the 5 zone. Any further losses may perhaps open the gates for a drop towards the main 0 support level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is rising and it is above the 50 level.
Major Support Level – 0
Major Resistance Level – 0