- ETH price corrected lower and tested the 6-137 support area against the US Dollar.
- The price is currently recovering and it may continue to rise above 1 and 4 in the near term.
- This was a break above a key contracting triangle with resistance near 9 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to climb above the 4 resistance area to trade to a new monthly high.
Ethereum price is trading with a positive bias against the US Dollar and bitcoin. ETH could extend gains once it breaks the 1 and 4 resistance levels in the coming sessions.
Ethereum Price Analysis
This past week, we saw a nice upside move above the 4 and 0 resistances in ETH price against the US Dollar. The ETH/USD pair traded close to the 4 level and later started a downside correction. There was a break below the 0 and 8 levels. It traded close 7 level and formed a low just above the 6 level. The price also stayed above the 100 hourly simple moving average, with a positive angle above 4.
At the moment, the price is trading above the 8 level and the 50% Fib retracement level of the recent decline from the 4 swing high to 7 swing low. Besides, there was a break above a key contracting triangle with resistance near 9 on the hourly chart of ETH/USD. The pair climbed higher and tested the 1 resistance area. It represents the 61.8% Fib retracement level of the recent decline from the 4 swing high to 7 swing low. In the short term, there could be a few swing moves above 8. However, the price is likely to climb above 1 and 2 in the coming sessions.
On the upside, the main resistance is near the 4 level, above which the price could target a new monthly high. The next key resistances are near the 8 and 0 levels. On the downside, an initial support is at 8. If there are more losses, the price may struggle to stay above the 7 support zone.
Looking at the chart, ETH price likely completed a downside correction near the 7 level. If buyers gain pace above the 1, there could be a solid upward move towards the 4 and 8 levels. Conversely, a downside break below the 7 support and 100 SMA could trigger more downsides in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD just moved back in the bullish zone.
Hourly RSI – The RSI for ETH/USD climbed back above the 50 level and it is testing the 60 level.
Major Support Level – 7
Major Resistance Level – 1
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