ETH price is showing positive signs above $200 pivot level against the US Dollar.
A strong support base is forming above $205 and the 100 simple moving average (4-hours).
There is a crucial contracting triangle forming with resistance near $210 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could start a strong rally if it breaks $210 and $215 in the near term.
Ethereum Price Eyeing Another Rally
This past week, Ethereum failed to clear the key $215 resistance area against the US Dollar. ETH price started a nasty decline and broke the key $202 and $200 support levels.
The price even spiked below the $195 level and the 100 simple moving average (4-hours). Ether tested a major support zone at $192, where the bulls took a strong stand.
A low is formed near $191 and the price started another upward move. It surpassed the $200 and $202 resistance levels. Besides, there was a break above the 50% Fib retracement level of the main drop from the $215 swing high to $191 swing low.
Ethereum is now trading above the $205 level and the 100 simple moving average (4-hours). It is facing a major resistance near the $210 level. There is also a crucial contracting triangle forming with resistance near $210 on the 4-hours chart of ETH/USD.
Ethereum Price
The triangle trend line coincides with the 76.4% Fib retracement level of the main drop from the $215 swing high to $191 swing low. If the bulls are able to clear the triangle resistance at $210, it could even surpass the main $215 resistance level.
A successful break above the $215 resistance zone may perhaps start a steady rise towards the $220 and $230 resistance levels. Any further gains might call for a test of the $250 resistance zone in the near term.
Bearish Break?
If Ethereum fails to continue above the $210 and $215 resistance levels, there are chances of anther drop in the near term. An initial support is near the $203 level and the 100 simple moving average (4-hours).
The main support is near the $200 level and the triangle support, below which the price is likely to accelerate lower towards the $192 support zone.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $200
Major Resistance Level – $210
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.