Ethereum formed a strong support base above the 4 level against the US Dollar. ETH is up over 3% and it broke the key 0 and 2 resistance levels.
- Ethereum is gaining bullish momentum above the 0 pivot and the 100 hourly simple moving average.
- The price is up more than 3% and it even tested the 5 resistance level.
- There was a break above a major bearish trend line with resistance near 0 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is showing positive signs and it seems like it could continue to rise towards 0 and 0.
Ethereum Price is Surging
In the past few days, Ethereum price formed a strong support base above 4 against the US Dollar. ETH price started a fresh increase and surpassed a couple of important hurdlers near 8 and 0.
The bulls gained strength, resulting in a steady rise above the 0 resistance the 100 hourly simple moving average. More importantly, there was a break above a major bearish trend line with resistance near 0 on the hourly chart of ETH/USD.
The pair even climbed above the 2 resistance and tested the 5 region. It is currently correcting lower and trading near the 23.6% Fib retracement level of the recent upward move from the 3 swing low to 5 high.
Ethereum price rallies 3%. Source: TradingView.com
On the downside, the first major support is near the 0 level (the recent breakout zone) and the trend line. It is close to the 50% Fib retracement level of the recent upward move from the 3 swing low to 5 high.
Once the current correction wave is complete, there are chances of another increase above the 5 resistance zone. In the mentioned case, ether price might continue to rise towards the 5 and 0 resistance levels in the coming sessions.
Another Failure in ETH?
If Ethereum fails to remain stable above the 0 support, there is a risk of a false upside break. A bearish close below the 0 support might spark a fresh decline.
The next major support is near the 4 level, below which the bears are likely to eye a sustained downward move.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well near the overbought zone.
Major Support Level – 0
Major Resistance Level – 5
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.