Ethereum traded close to the 0 support area and recently recovered against the US Dollar. ETH price is now trading above 5 and it is likely to continue higher towards 0 and 5.
Ethereum is slowly recovering above the 5 and 0 levels against the US Dollar.
The price is facing a couple of key hurdles near the 5 and 0 levels.
There was a break above a short term declining channel with resistance near 6 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is currently consolidating above the key ,500 support area.
Ethereum Price Could Recover Further
Yesterday, we discussed the chances of more downsides towards the 0 level in Ethereum against the US Dollar. ETH price did move down below 0 and tested the 5 support area.
A swing low is formed near 4 and the price is currently recovering higher. It surpassed the 23.6% Fib retracement level of the recent decline from the 6 high to 4 low.
During the rise, there was a break above a short term declining channel with resistance near 6 on the hourly chart of ETH/USD. Ethereum is now trading above the 5 level, but it is facing a couple of hurdles near the 2 and 5 levels.
Ethereum Price
The first key resistance is near the 5 level. It coincides with the 50% Fib retracement level of the recent decline from the 6 high to 4 low. Moreover, the 100 hourly simple moving average is also near the 5 level to act as a hurdle.
Therefore, an upside break above the 5 level and the 100 hourly simple moving average might open the doors for a decent upward move in the near term. In the mentioned case, the price is likely to recover towards the 0 and 5 levels.
Downsides Supported
If Ethereum price fails to continue above the 5 resistance and the 100 hourly simple moving average, it could decline once again. An initial support is near the 5 level.
The main support on the downside is near the 5 and 0 levels. If the bulls fail to defend the 0 support area, there is a risk of a larger decline towards the 0 level in the near term. An intermediate support is near the 2 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level, with positive signs.
Major Support Level – 5
Major Resistance Level – 5
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