Ethereum gained traction and managed to climb above the $205 level and the 100 hourly SMA.
The price is still struggling to clear the main $210 resistance zone.
There is a key bearish trend line forming with resistance near $209 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either rally above $210 or it might start a fresh decrease towards $200.
Ethereum Price Approaching Key Resistance
Ethereum price started a decent increase from the $196 swing low. ETH price managed to gain traction and climbed above the $204 and $205 resistance levels.
There was also a close above the $205 level and the 100 hourly simple moving average. During the rise, there is a key bearish trend line forming with resistance near $209 on the hourly chart of ETH/USD.
Ethereum Price
However, the price is still struggling to clear the $210 resistance zone. A high is formed near $209 and the price is currently correcting lower. It is trading near the 23.6% Fib retracement level of the recent rise from the $196 swing low to $209 high.
The first key support on the downside is near the $205 level and the 100 hourly simple moving average. The next major support is seen near the $202 level. It is close to the 50% Fib retracement level of the recent rise from the $196 swing low to $209 high.
On the upside, the price is likely to continue higher if it clears the $210 resistance zone. The next major hurdle is seen near the $220 level, above which it could revisit $230.
Another Rejection?
If Ethereum continues to struggle near the $210 level, there are chances of another bearish push below $202. If there are more losses, there are chances of another drop towards the $198 and $196 support levels.
A successful close below the $198 support zone, the bears are likely to take control and they might aim a test of the $192 support zone in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a positive angle.
Major Support Level – $205
Major Resistance Level – $210
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.