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Ethereum is currently holding the key $100 support zone against the US Dollar. ETH price is slowly recovering and it seems to be eyeing a crucial upside break above $126 and $130.
- Ethereum is slowly recovering from the $100 support area against the US Dollar.
- It is trading above the $110 level, but facing a lot of hurdles on the upside near $126 and $130.
- Two key bearish trend lines are forming with resistance near $128 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is back above the $5,000 support area and it is slowly recovering.
Ethereum Price Approaching Key Resistance
Yesterday, there was a fresh decline in Ethereum from the $130 resistance area against the US Dollar. ETH price broke the $120 and $115 support levels to move back into a bearish zone.
The bears were able to push the price below the $110 level and the price settled well below the 100 hourly simple moving average. A new weekly low is formed near $100, where the bulls emerged.
As a result, Ethereum started an upside correction and traded above the $108 and $110 levels. There was a break above the 23.6% Fib retracement level of the downward move from the $134 swing high to $100 low.
The price is now trading near the $118 and $120 resistance levels. It seems like the 50% Fib retracement level of the downward move from the $134 swing high to $100 low is acting as a strong hurdle.
More importantly, two key bearish trend lines are forming with resistance near $128 on the hourly chart of ETH/USD. The 100 hourly simple moving average is also positioned near the $127 level to stop the bulls.
Therefore, a successful close above the $130 resistance and the 100 hourly SMA is needed to start a strong increase in the near term. The next key hurdle for the bulls is near the $144 and $145 levels.
Another Failure?
If Ethereum struggles to continue above the $128 and $130 resistance levels, it could start another drop. An initial support is near the $110 and $108 level.
A clear break below the $108 support may perhaps lead the price towards the $100 support area. Any further losses are likely to spark a panic sell move and the price could drop towards $90 or $85.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising and it is above the 50 level.
Major Support Level – $108
Major Resistance Level – $128
