Ethereum (ETH) Price Likely Setting Up For Next Rally
- Ethereum price is trading nicely above the $180 support area against the US Dollar.
- Bitcoin price is down more than 2%, but it is trading well above the $9,000 support area.
- There was a break above a connecting bearish trend line with resistance near $185 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to gain pace and it could rally above the $188 and $190 resistance levels.
Ethereum price is showing positive signs above $180 versus the US Dollar, while bitcoin is correcting lower. ETH price is likely to start a fresh increase above $188.
Ethereum Price Analysis
Recently, there was a downside correction in Ethereum from the $200 resistance area. ETH price declined below the $190 and $185 levels. However, the $175 area provided support and the price remained well above the 100 hourly simple moving average.
A swing low was formed near $174 and the price started a fresh increase. It recovered above the $180 and $182 resistance levels. Moreover, there was a break above the 23.6% Fib retracement level of the downside correction from the $199 high to $174 low.
At the outset, the price is trading well above the $182 level and the 100 hourly SMA. Besides, there was a break above a connecting bearish trend line with resistance near $185 on the hourly chart of ETH/USD.
An immediate resistance is near the $186 and $188 levels. More importantly, the 61.8% Fib retracement level of the downside correction from the $199 high to $174 low is near the $190 level to stop the upward move.
Therefore, Ethereum must surpass the $188 and $190 resistance levels to continue higher in the near term. The next major resistance is near the $195 level, above which the price could revisit the $200 handle.
On the downside, there is a strong support forming near the $180 level and the 100 hourly SMA. If there is a bearish break below the $180 support, the price could decline towards the $175 support. Any further losses may perhaps lead the price towards the $170 pivot level.
Ethereum Price
Looking at the chart, Ethereum price is showing a lot of positive signs above the $180 support area. A convincing close above the $188 and $190 resistance levels could set the pace for another rally towards the $200 area. If no, there is a risk of an extended downside correction towards the $170 zone.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is climbing higher and is well above the 50 level.
Major Support Level – $180
Major Resistance Level – $190
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Aayush Jindal, Khareem Sudlow