• ETH price traded further higher towards the $180 level before correcting lower against the US Dollar.
• The price dipped sharply below the $170 and $165 support levels to move into a short term bearish zone.
• Yesterday’s highlighted key bullish trend line was breached with support at $173 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair found a strong buying interest near the $155 support and it is currently moving higher.

Ethereum price started a major downside correction after a massive upside versus the US Dollar and bitcoin. ETH is likely to bounce back above $170 as long as it is above $155.

Ethereum Price Analysis

In the past two days, we saw a massive rally in bitcoin and Ethereum against the US Dollar. The ETH/USD pair jumped above the $160 and $170 resistance levels. There was a proper close above the $165 level and the 100 hourly simple moving average. The price even climbed above the $175 level and traded towards the $180 level. A new yearly high was formed at $180 and later the price started a sharp downside correction.

There was a sharp dip below the $175, $170 and $168 support levels. The price even broke the key $165 support area to enter a short term bearish zone. Moreover, yesterday’s highlighted key bullish trend line was breached with support at $173 on the hourly chart of ETH/USD. The pair tested the $155 support area and the 100 hourly simple moving average. A strong buying interest emerged and a swing low was formed near $154. Later, the price bounced back above $160 and the 23.6% Fib retracement level of the recent drop from the $180 high to $154 low.

However, the price is currently facing a strong resistance near the $165 level. The stated $165 level was a support earlier and now it is preventing gains. The next resistance is near the $167 level. It represents the 50% Fib retracement level of the recent drop from the $180 high to $154 low.

Looking at the chart, Ethereum price could gain traction above the $165 level and it could test the $167 or $170 resistance level. Later, there could be a fresh drop towards the $158 zone, where buyers are likely to appear. As long as Ether is trading above the $155 support and the 100 hourly SMA, it is likely to resume its upward move in the near term.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently placed heavily in the bearish zone.

Hourly RSI – The RSI for ETH/USD dipped sharply below the 50 level and it is currently near the 42 level.

Major Support Level – $155

Major Resistance Level – $170