Ethereum is showing positive signs above the $188 and $190 levels.
The price could face a strong selling interest near the $200 and $205 levels.
There was a break above a key declining channel with resistance near $188 on the hourly chart of ETH/USD (data feed via Kraken).
A clear break above the 100 hourly SMA and $195 might open the doors for more gains.
Ethereum Price is Gaining Traction
Ethereum price seems to be forming a decent support base above the $175 and $180 levels against the US Dollar. ETH price is currently rising (similar to bitcoin) and it recently surpassed the $185 and $188 resistance levels.
There was a clear break above the 23.6% Fib retracement level of the last major downward move from the $214 high to $176 low. More importantly, there was a break above a key declining channel with resistance near $188 on the hourly chart of ETH/USD.
Ethereum Price
The pair is now approaching the $192 resistance and the 100 hourly SMA. An immediate hurdle above the 100 hourly SMA is near the 50% Fib retracement level of the last major downward move from the $214 high to $176 low at $195.
If Ethereum clears the $195 resistance, it is likely to continue higher towards the $200 handle. Any further gains could lead the price towards the $205 resistance level. There is also a connecting bearish trend line forming with resistance near $207 on the same chart.
Once Ether settles above the $200 and $205 resistance levels, there are chances of a strong and sustained upward move towards the $220 resistance zone.
Bearish Rejection
If Ethereum fails to gain momentum above the $195 resistance or the $200 barrier, it could face a fresh round of selling. An initial support is near the $188 level.
The first major support is near the $180 level, below which the price could revisit the main $176 and $175 support levels. Any further losses may lead the price towards the $165 level in the coming days.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting lower towards the 50 level.
Major Support Level – $180
Major Resistance Level – $195
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