Ethereum Set For Further Gains In Light of Fresh Technical Breakout

Ethereum Fresh Rise

Ethereum found support near the $158 level and started a fresh increase, similar to bitcoin. ETH is gaining momentum and it could soon break the $170 resistance.

Ethereum Starts Fresh Increase

Yesterday, we saw a short term downside correction in Ethereum from the $172 resistance against the US Dollar. ETH price traded below the $165 support level and even broke the $160 level.

However, the price remained well supported near $158 and the 100 hourly simple moving average. A decent support base was formed near the $158 level and recently the price started a fresh increase.

It broke the 23.6% Fib retracement level of the downside correction from the $172 swing high to $158 low. Moreover, yesterday’s highlighted key declining channel was breached with resistance near $165 on the hourly chart of ETH/USD.

Ethereum Price

The pair is now trading near the $165 area. Besides, the 50% Fib retracement level of the downside correction from the $172 swing high to $158 low is also near the $165 level.

If there is a clear break above the $165 resistance, Ethereum price is likely to accelerate higher towards the $170 and $172 level. Any further gains could lead the price towards the $180 zone.

Dips In ETH Remain Supported

If ETH struggles to clear the $165 resistance, it could correct again. An initial support is near the $160 level. The main support on the downside is near the $158 level and the 100 hourly simple moving average.

If Ethereum bears manage to push the price below the $158 support and the 100 hourly simple moving average, there could be a sharp decline.

In the mentioned case, the price is likely to test the $150 support area in the near term. Overall, the current price action is positive, suggesting more gains above the $165 and $170 levels.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now back above the 50 level, with a bullish angle.

Major Support Level – $160

Major Resistance Level – $170

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