Ethereum Rallies 5%: Is This A False Breakout or Real Move To $200?

Aayush Jindal

1 year ago

2 mins read

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Ethereum found support near the $158 area and climbed around 5%, just like bitcoin. However, ETH price is facing a strong resistance near $170, above which it could continue higher.

After forming a support base near the $158 level, Ethereum recovered above $162 against the US Dollar.
The price is up more than 5% and it broke the $165 resistance area.
There was a break above a key bearish trend line with resistance near $161 on the hourly chart of ETH/USD (data feed via Kraken).
The bulls need to gain strength above $170 for more upsides in the near term.

Ethereum Price Approaching Resistance

Recently, there was a strong recovery in both bitcoin and Ethereum from $158 and $8,200 against the US Dollar. ETH price was able to climb above the key $162 resistance and the 100 hourly simple moving average to move into a positive zone.

During the rise, there was a break above a key bearish trend line with resistance near $161 on the hourly chart of ETH/USD. More importantly, the bulls were able to push the price above the $165 resistance area.

Ethereum price climbed around 5% and it traded close to the key $170 resistance area. The previous rejection area near $170 might continue to play an important factor for a larger upward move.

If there is a clear break above the $170 resistance, the price is likely to continue higher towards the $180 resistance. Any further gains could start a larger upward move towards the $200 resistance area. An intermediate resistance area is near the $188 level and the $190 pivot level.

What If ETH Tops Near $170

There are high chances that ETH price could struggle to continue above $170. In the mentioned case, the price may perhaps decline below the 23.6% Fib retracement level of the recent rise from the $159 swing low to $169 high.

The first major support on the downside is near the $165 level (the recent breakout zone). It also coincides with the 50% Fib retracement level of the recent rise from the $159 swing low to $169 high.

If Ethereum fails to stay above the $165 support, it could revisit the $162 support area or the 100 hourly SMA. Below $162, the price is likely to resume its decline in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting lower from the 70 level.

Major Support Level – $165

Major Resistance Level – $170

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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