Friday, March 29, 2024
Home > News > Ethereum News > Ethereum Showing Early Signs of Strong Recovery But 100 SMA Is The Key

Ethereum Showing Early Signs of Strong Recovery But 100 SMA Is The Key

Ethereum is holding the main $200 and $198 support levels against the US Dollar. ETH price is currently testing the 100 hourly SMA and struggling to continue higher above $205.

  • Ethereum is facing a strong resistance near the $205 level and the 100 hourly SMA.
  • The price is likely to accelerate higher if it breaks the $205 resistance zone.
  • There was a break above a key bearish trend line with resistance near $202 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair might decline again towards $200 or $198 if it fails near the 100 hourly SMA.

Ethereum Price Testing 100 Hourly SMA

Ethereum price declined again below the $200 support zone. ETH price even spiked below the $198 support and settled below the 100 hourly simple moving average.

However, the decline was limited and the price found support near $196. It is currently rising and trading above the $200 pivot level. There was a break above the 23.6% Fib retracement level of the key decline from the $211 high to $196 low.

More importantly, there was a break above a key bearish trend line with resistance near $202 on the hourly chart of ETH/USD. Ether is now trading near a major hurdle at $204 and the 100 hourly simple moving average.

Ethereum Price

The 50% Fib retracement level of the key decline from the $211 high to $196 low is also acting as a resistance. If Ethereum gains pace above the 100 hourly SMA and clears the $205 resistance, there are chances of a sustained upward move in the coming sessions.

The next major resistance is near the $210 level (an inflection zone). A clear break above the $210 resistance could open the doors for a sharp rise in the coming sessions in the near term.

Another Rejection?

If Ethereum struggles to gain pace above the 100 hourly SMA and the $205 resistance, it could start a fresh decline. The main support zone is near the $198 level.

If there is a successful daily close below the $198 level could open the doors for a larger decline. The next key support is near the $192 level, below which it could slide towards the $180 zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now rising and it is well above the 50 level.

Major Support Level – $198

Major Resistance Level – $205

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Source