Ethereum is up close to 15% and it broke many hurdles against the US Dollar. ETH price settled above the $170 level and it is facing a key resistance near the $175 level.
- Ethereum rallied more than 10% and broke many resistances near $165 and $170.
- The bulls pushed the price towards the next key hurdle near $174-$175.
- There was a break above a crucial bearish trend line with resistance near $158 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair is currently consolidating gains near $170 and it might correct in the short term.
Ethereum Price Rally Looks Real
As discussed on many occasions in the past few days, Ethereum remained well supported above the $145 area against the US Dollar. ETH price traded close to the $145 level and recently started a sharp rise.
There was a break above the $155 resistance level to start a major upward move. More importantly, there was a break above a crucial bearish trend line with resistance near $158 on the hourly chart of ETH/USD.
It opened the doors for a sharp rally above the $160 barrier and the 100 hourly simple moving average. Ethereum gained bullish momentum and surpassed the $170 resistance. It traded close to the $174-$175 resistance area and it is currently consolidating in a range.
It seems like there is a contracting triangle forming with support near the $168 level. If there is a downside break, the price might correct lower towards $166 or the 23.6% Fib retracement level of the recent upward move from the $146 swing low to $174 high.
Any further losses could lead the price towards the $163 support area (the recent breakout zone). It is also close to the 38.2% Fib retracement level of the recent upward move from the $146 swing low to $174 high.
On the upside, there is a major resistance forming near the $174 and $175 levels. If Ethereum price clears the $175 resistance, there are chances of more upsides in the near term.
An immediate hurdle is near the $185 level, above which the bulls are likely to aim a test of the $192 resistance level. Any further gains might lead the price towards the $200 handle.
Hourly MACD – The MACD for ETH/USD is currently reducing its bullish slope.
Hourly RSI – The RSI for ETH/USD is currently correcting lower from the 75 level.
Major Support Level – $163
Major Resistance Level – $175
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial…
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