Ethereum is slowly rising and it recently broke the $192 resistance against the US Dollar. ETH price must gain bullish momentum above $205 to start a strong rally towards $220 or $230.
- Ethereum is moving into a positive zone, with a close above the $192 resistance.
- The price is still struggling to clear the $200 and $205 resistance levels.
- There is a major bullish trend line forming with support near $195 on the hourly chart of ETH/USD (data feed via Kraken).
- A clear break above the $205 barrier is must for a sustained upward move.
Ethereum Price is Approaching a Key Hurdle
Ethereum price remained well bid above the $180 and $185 support levels against the US Dollar. As a result, ETH price started a steady rise and broke the main $192 resistance to move into a positive zone.
The bulls were able to push the price above the $195 level and the 100 hourly simple moving average. The price even spiked above $200 and traded as high as $201.
Ether is currently correcting gains and trading near the $198 level. The first major support is seen near the $195 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent rise from the $188 low to $201 high.
More importantly, there is a major bullish trend line forming with support near $195 on the hourly chart of ETH/USD. If Ethereum corrects lower, it is likely to find a decent support near $195 and the 100 hourly SMA.
On the upside, an initial resistance is near the $200 level. The main resistance is near the $205 level and a connecting bearish trend line on the same chart. If there is a clear break above the $205 resistance zone, the price is likely to accelerate higher towards $220 or even $230.
Downside Correction
The first major support is near the $195 zone. If Ethereum fails to stay above the $195 level, there is a risk of a downside extension towards the $192 level (the recent breakout zone).
The 76.4% Fib retracement level of the recent rise from the $188 low to $201 high is also near the $192 level to stop the bears. Any further losses may restart downtrend and the price might revisit $180.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting lower towards the 60 level.
Major Support Level – $192
Major Resistance Level – $205
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