Ethereum is facing a strong resistance near the $172 and $175 levels.
The 100 hourly simple moving average at $165 is likely to act as a strong support and breakdown zone.
There is a crucial contracting triangle forming with resistance near $172 on the hourly chart of ETH/USD (data feed via SimpleFX).
The pair could either rally above $175 or it might decline significantly below the 100 hourly SMA.
Ethereum Price Holding 100 Hourly SMA
After forming a swing high near the $175 level, Ethereum started trading in a contracting range against the US Dollar. ETH price corrected a few points and traded below the $170 level.
The bears pushed the price below the 23.6% Fib retracement level of the upward move from the $138 swing low to $175 high. However, the $160-$161 zone acted as a strong support for the bulls.
It seems like the 38.2% Fib retracement level of the upward move from the $138 swing low to $175 high also provided support. As a result, the price started trading in a contracting range above the $160 support.
At the moment, Ethereum is trading near the $165 level and the 100 hourly simple moving average. There is also a crucial contracting triangle forming with resistance near $172 on the hourly chart of ETH/USD.
Ethereum Price
The triangle support and the 100 hourly SMA are important barriers for the bears. If they succeed in clearing the 100 hourly SMA, the price might even dive below the $160 support.
The next major support is visible near the $152 level. Any further losses may perhaps lead the price towards the $144 support.
Chances of an Upside Break
On the upside, there are key hurdles forming near the $172 and $175 levels. A clear break above the triangle resistance and then a follow up move above the $175 barrier is needed for a sustained upward move.
The next key resistance is near the $180 level, above which the bulls are likely to aim a test of the $188 level. The final target for the bulls above $175 might be the $200 handle in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $165
Major Resistance Level – $175