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- ETH price rallied recently and broke many resistances near $172 and $185 against the US Dollar.
- The price even spiked above the $188 resistance and it is currently correcting lower.
- There was a break above a significant bearish trend line with resistance near $170 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to find a strong support near $175 and $172 levels in the coming sessions.
Ethereum price is trimming gains below $185 against the US Dollar, similar to bitcoin. ETH is likely to stay above $172 and it could bounce back in the near term.
Ethereum Price Weekly Analysis
In the past two days, Ethereum gained bullish momentum from the $155 support area against the US Dollar. As a result, there was a sharp rally above the $165 and $172 resistance levels to start an uptrend.
Moreover, there was a close above the $175 level and the 100 simple moving average (4-hours). During the rise, there was a break above a significant bearish trend line with resistance near $170 on the 4-hours chart of ETH/USD.
It opened the doors for more gains and the price rallied above the $188 and $195 resistances. Ethereum traded as high as $199 and recently started a downside correction.
There was a break below the $185 support, plus the price declined below the 23.6% Fib retracement level of the recent rally from the $153 swing low to $199 high. Additionally, the price traded below the $180 level and tested the 100 simple moving average (4-hours).
It seems like the 50% Fib retracement level of the recent rally from the $153 swing low to $199 high is acting as a strong support. If there is a downside break below the $175 support, the price could test the $172 support area, where the bulls are likely to take a stand.
A similar price action is visible in bitcoin near $9,000. Therefore, ETH must stay above the $175 and $172 support levels to start a fresh increase. If not, it may perhaps decline towards the $165 and $160 support levels in the near term.
The above chart indicates that Ethereum price is trading near a couple of important supports above $175 and $172. Therefore, there are high chances of a fresh increase above $180 and $185. The main resistance is near $188, above which the price might revisit the $200 handle.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is still well above the 50 level, with bullish signs.
Major Support Level – $172
Major Resistance Level – $188
