Ethereum is showing signs of an upside correction from the 6 low against the US Dollar. However, ETH price is likely to face a major resistance near 5 and the 100 hourly SMA.
Ethereum extended its decline and traded to a new weekly low at 6.
The price is currently recovering and showing positive signs above 5.
There is a major declining channel forming with resistance near 9 on the hourly chart of ETH/USD (data feed via Kraken).
The bulls are likely to struggle and face a strong barrier near 5 and 8.
Ethereum Price is Facing Hurdles
After testing the 0 level, Ethereum made a recovery attempt above 5 against the US Dollar. ETH price climbed above the 8 resistance, but it struggled to surpass the 0 pivot level.
As a result, there was a fresh decline and the price broke the 0 low. A new weekly low was formed near 6 and the price is again correcting higher. It climbed above the 23.6% Fib retracement level of the key decline from the 4 high to 6 low.
Ethereum is now approaching the 0 resistance zone. There is also a major declining channel forming with resistance near 9 on the hourly chart of ETH/USD. If there is a clear break above the channel resistance and 0, the price could continue to recover.
Ethereum Price
On the upside, there is a major resistance forming near the 5 level and the 100 hourly simple moving average. The 50% Fib retracement level of the key decline from the 4 high to 6 low is also near 5.
To start a decent upward move and a fresh bullish wave, ether price must surpass 5, 100 hourly SMA, and the 8 pivot level. A successful close above 8 will most likely open the doors for a push above the 0 and 2 resistance levels in the near term.
Bearish Continuation
If Ethereum fails to climb above the 0 and 5 resistance levels, it is likely to resume its decline. An immediate support is near the channel lower trend line at 7.
The key supports are near 6 and 5, below which the price could accelerate its drop towards the 5 level in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is struggling to stay above the 50 level.
Major Support Level – 5
Major Resistance Level – 5
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