Ethereum is correcting lower and trading below the $170 level against the US Dollar, similar to bitcoin.
The price is holding the main $162 and $158 support levels.
There is a key contracting triangle forming with resistance near $170 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rally again towards $180 as long as there is no close below the $158 support.
Ethereum Price Remains in Uptrend
Yesterday, we saw a sharp rise in Ethereum above the $160 and $170 levels against the US Dollar. However, ETH price struggled to clear the $175 resistance and the 100-day simple moving average (as discussed in yesterday’s analysis).
A new monthly high is formed near the $176 level and the price recently corrected lower. It broke the $170 level to start the correction. There was a break below the 23.6% Fib retracement level of the upward move from the $140 swing low to $176 high.
On the downside, the $162 level is acting as a strong support and Ethereum is trading well above the 100 hourly simple moving average. There is also a key contracting triangle forming with resistance near $170 on the hourly chart of ETH/USD.
Ethereum Price
If there is an upside break above the triangle resistance and $170, the price is likely to restart its rise. An immediate resistance is near the $175 level, above which the price could surge towards the $180 level. Any further gains could lead the price towards the $188 level.
Key Buy Zones
On the downside, Ethereum is likely to remain well supported above the $162 levels. The next major support is near the $158 level. It coincides with the 50% Fib retracement level of the upward move from the $140 swing low to $176 high.
The 100 hourly simple moving average is also near the $155 level to act as a strong support. If the price fails to stay above the $158 support and the 100 hourly SMA, it could extend its decline towards the $150 and $144 levels in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently declining and approaching the 50 level.
Major Support Level – $140
Major Resistance Level – $145
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