Ethereum is struggling to gain bullish momentum above the 0 and 0 resistance levels against the US Dollar. ETH price remains at a risk of drop below 0 if it continues to struggle near 0.
Ethereum is facing an uphill task near the 0 and 1 resistance levels.
A crucial support is forming near the 7-8 zone.
There is a major bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
The bulls must gain strength above 0 for a sustained move towards 0 and 0.
Ethereum Price Trading Near Key Hurdle
Recently, Ethereum made another attempt to surpass the 0 resistance against the US Dollar, but it failed. ETH price formed a short term top near 1 and declined sharply.
There was a break below the 2 support zone, but the 7-8 region acted as a strong buy zone. Ether price traded as low as 7 and it is currently rising. There was a break above the 2 and 5 levels.
The price surpassed the 50% Fib retracement level of the recent decline from the 1 high to 7 low. However, Ethereum is currently struggling to clear 8 and the 100 hourly simple moving average.
There is also a major bearish trend line forming with resistance near 0 on the hourly chart of ETH/USD. An intermediate resistance is near the 76.4% Fib retracement level of the recent decline from the 1 high to 7 low.
Ethereum Price
To move into a positive zone and start a strong upward move, the price must break the 0 and 1 resistance levels. If the bulls gain bullish momentum above 1, the price is likely to grind higher towards the 0 level. The next major resistance is seen near the 0 level.
Another Failure?
If Ethereum fails again to break the 0 and 1 resistance levels, there could be another bearish reaction. An initial support on the downside is near the 2 level.
The main support is now forming near the 7 and 8 levels. If the price fails to stay above 0 and settles below 7, there is a risk of a significant decline towards the 2 and 0 support levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – 0
Major Resistance Level – 1
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