Ethereum is forming a decent support base above $180 against the US Dollar. ETH price is likely to start a strong increase if it breaks the $192 resistance zone.
- Ethereum started an upside correction from the $180 low and corrected above $185.
- The price is currently facing a couple of key hurdles near $190 and $192.
- There is a key connecting bearish trend line forming with resistance near $190 on the hourly chart of ETH/USD (data feed via Kraken).
- It seems like there is an inverse head and shoulders pattern forming with resistance near $190-$192.
Ethereum Price Could Climb Above $195
This past week, we saw a sharp decline in bitcoin and Ethereum below $9,000 and $200 respectively against the US Dollar. ETH price even broke the $192 support and settled below the 100 hourly simple moving average.
It traded as low as $180 and recently started an upside correction. There was a break above the $185 level, plush the price surpassed the 23.6% Fib retracement level of the downward move from the $214 swing high to $180 low.
On the upside, there is a major resistance forming near the $190 and $192 levels. There is also a key connecting bearish trend line forming with resistance near $190 on the hourly chart of ETH/USD.
It seems like there is an inverse head and shoulders pattern forming with resistance near $190-$192. In the short term, Ethereum might dip a few points for form the right shoulder near the $185 level.
On the upside, the bulls need to push the price above the $190 and $192 resistance levels. If they succeed, Ether might continue to recover above the $195 resistance.
The next major resistance is near the $198 and $200 levels. The 50% Fib retracement level of the downward move from the $214 swing high to $180 low is also near the $198 level to act as a resistance. Therefore, a clear break above $198 and $200 could lead the price towards $210.
Bearish Scenario
If Ethereum fails to stay above the $185 and $180 support levels, it could resume its decline. The next support is seen near the $178 level.
The main support might be $175, below which the bears are likely to aim a sustained downward move towards the $162 and $160 levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently moving nicely in the bullish zone.
Hourly RSI – The RSI for ETH/USD is struggling to move above the 50 level.
Major Support Level – $180
Major Resistance Level – $192
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Featured image from unsplash.
