Ethereum surged close to 20% and climbed above the $170 resistance against the US Dollar. However, ETH price is struggling to gain momentum above the 100-day simple moving average.
- Ethereum is up close to 20% and it broke the $155 and $165 resistance levels against the US Dollar.
- The price even tested the $175 resistance and the 100-day simple moving average.
- There is a crucial bearish trend line forming with resistance near $182 on the daily chart of ETH/USD (data feed via Kraken).
- The pair must climb above the $180 resistance and the 100-day SMA to move into a larger uptrend.
Ethereum Price Jumps Significantly
In the past few sessions, there was a sharp increase in Ethereum above the $150 resistance (as discussed yesterday) against the US Dollar. ETH price outpaced bitcoin and rallied close to 20% to trade above the $165 resistance.
During the rise, there was a clear break above the $155 resistance. The price even climbed above the 23.6% Fib retracement level of the last major decline from the $252 high to $90 swing low.
The price traded above the $170 level, but it seems like it is facing a strong resistance near the $175 level and the 100-day simple moving average. The 50% Fib retracement level of the last major decline from the $252 high to $90 swing low is also acting as a resistance.
More importantly, there is a crucial bearish trend line forming with resistance near $182 on the daily chart of ETH/USD. If Ethereum succeeds in clearing the $175 and $182 resistance levels, it could move into a medium term uptrend.
The next key resistance is near the $190 level, above which the bulls are likely to aim a test of the $200 barrier. Any further gains could lead the price towards the $220 level in the near term.
Rejection Near $175-$180?
If Ethereum fails to clear the $175 and $180 resistance levels, it could correct lower. An initial support on the downside is near the $160 level.
The first major support is now near the $150 level and a connecting bullish trend line on the same chart. A successful daily close below the $150 support level could start another decline. The next key support is seen near the $124 level.
Technical Indicators
Daily MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Daily RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $150
Major Resistance Level – $180
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