Ethereum is up more than 15% and it broke the $130 resistance area against the US Dollar. ETH price is now facing a few important downtrend resistances near $142 and $145.
- Ethereum is gaining traction and it recently surged above $130 and $135 against the US Dollar.
- The bears are now defending more gains above the $140 and $142 levels.
- There is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also up more than 15% and it tested the key $6,400-$6,500 resistance area.
Ethereum Price Rally Facing Hurdles
After trading in a range for a few sessions, Ethereum gained strength above the $125 resistance against the US Dollar. ETH price broke a key hurdle near the $130 level to start a solid rally.
The bulls gained momentum and the price surged above the $135 level. Besides, there was a close above the $135 level and the 100 hourly simple moving average. The price traded to a new weekly high at $144, where the bears emerged.
It seems like the previous important supports near $142-$145 are now acting as a barrier for the bulls. Ethereum is currently correcting lower from the $143 swing high.
It is testing the 23.6% Fib retracement level of the recent rally from the $110 low to $143 high. On the downside, there are many supports forming near the $130 level. More importantly, there is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD.
The 50% Fib retracement level of the recent rally from the $110 low to $143 high is also near the $126 level to act as a strong support along with the 100 hourly SMA. Therefore, a downside correction towards the $130 and $126 levels may perhaps find a solid buying interest in the near term.
Upside Extension
On the upside, Ethereum is facing a series of crucial hurdles, starting with $142 and up to $150. To move into an uptrend and start a strong rally, the price must settle above the $150 resistance level.
If not, it is likely to slide back towards the $126 and $122 levels in the coming sessions. The main support is now forming near the $120 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower from well above the 60 level.
Major Support Level – $130
Major Resistance Level – $142
