Ethereum found support near the 0 level and settled above 0 against the US Dollar. ETH price is likely to gain momentum if there is a proper close above 0.
- Ethereum is showing a few positive signs above the 0 and 2 support levels.
- The price is testing the 0 resistance and it is above the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near 2 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate higher if there is a clear break and close above 0.
Ethereum Price is Attempting Upside Break
Ethereum recovered from the 0 support level and it climbed back above 0. ETH price is now forming a support base near the 0 level and the 100 hourly simple moving average.
The recent increase gained pace after there was a break above a major bearish trend line with resistance near 2 on the hourly chart of ETH/USD. Ether price even broke the 50% Fib retracement level of the downward move from the 8 high to 0 low.
It opened the doors for more gains above 5, but the price seems to be facing a strong resistance near the 0 level. The 76.4% Fib retracement level of the downward move from the 8 high to 0 low is also acting as a resistance.
To start a strong rally, ether must break the 0 barrier. A successful close above the 0 resistance is likely to open the doors for a fresh high above 8 (similar to bitcoin). In the stated case, there are chances of a steady rise towards the 0 barrier. An intermediate resistance could be near the 5 level.
Downsides Limited in ETH?
If there is no upside break above the 8 and 0 resistance levels, ethereum might correct a few points. An initial support is near the 0 level.
The main support is now forming near the 8 level and the 100 hourly simple moving average. Any more losses could trigger a larger decline below the 0 support level in the near term. The next key support for the bulls is near the 0 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – 8
Major Resistance Level – 0