Ethereum started a fresh increase from the 0 support zone against the US Dollar. ETH price must surpass 0 to start a strong upward move towards 0.
- ETH price declined heavily from 0 and it even tested 0 against the US Dollar.
- The price is currently recovering above 0 and the 100 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near 0 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could rise sharply towards 0 and 0 if it clears the 0 resistance.
Ethereum Price is Approaching Next Break
This past week, bitcoin and ethereum saw a sharp downside correction below ,000 and 0 respectively against the US Dollar. ETH price even spiked below the 0 support and the 100 simple moving average (4-hours).
It tested the 0 support level and formed a support base for a fresh increase. Ether recovered above the 0 level and the 100 simple moving average (4-hours). The price even climbed above the 23.6% Fib retracement level of the downside correction from the 0 swing high to 0 swing low.
The price is now approaching a major resistance area near 0. There is also a key bearish trend line forming with resistance near 0 on the 4-hours chart of ETH/USD.
Source: ETHUSD on TradingView.com
The 50% Fib retracement level of the downside correction from the 0 swing high to 0 swing low is also near the 0 level to act as a major resistance. A successful break above the 0 level could spark a strong upward move.
The next key resistance is near the 0 level. If ether clears the 0 resistance, it could even retest or surpass the 0 resistance level in the coming sessions.
Fresh Decline in Ether (ETH)?
If Ethereum fails to extend its rise above 0, it could start another downward move. The first major support zone sits near the 0 level.
The 100 simple moving average (4-hours) is also near the 2 level to act as a major support. A downside break below the 2 level and 0 might put ether at a risk of more losses below 0.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is now above the 50 level, but showing a few bearish signs.
Major Support Level – 2
Major Resistance Level – 0