Ethereum Is Trading Near Crucial Resistance, Are Bulls Ready For A Surge?

Aayush Jindal

1 year ago

2 mins read

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Ethereum is slowly recovering and trading towards the $120 resistance against the US Dollar. ETH price could climb higher sharply if there is a clear break above $120 and $124.

Ethereum is showing a few positive signs above the $110 support zone against the US Dollar.
It is currently testing a major hurdle near the $120 resistance area.
Two key bearish trend lines are acting as a hurdle near $119-$120 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is gaining traction and it is now testing the $5,350 resistance.

Ethereum Price Could Surge In Short Term

After settling above the $100 level, Ethereum started a steady increase against the US Dollar. ETH price broke the $110 and $112 resistance levels to start a decent recovery.

The bulls were able to push the price above the $215 level, but it is still below the 100 hourly simple moving average. At the outset, the price is flirting with the 23.6% Fib retracement level of the last drop from the $134 swing high to $101 low.

More importantly, two key bearish trend lines are acting as a hurdle near $119-$120 on the hourly chart of ETH/USD. It seems like Ethereum is facing a strong barrier near the $119 and $120 levels.

An immediate resistance above the trend line is near the $122 level since it is close to the 61.8% Fib retracement level of the last drop from the $134 swing high to $101 low.

The next key resistance is near the $124 level and the 100 hourly simple moving average. Therefore, a successful break above the $120 and $124 resistance levels might open the doors for a strong upward move in the near term. The next key hurdle for the bulls is near the $134 and $142 levels.

Another Rejection?

If Ethereum fails to clear both trend line and the $120 resistance, it could start a fresh decrease. An initial support is near the $115 level, below which the bears are likely to take control.

The next major support is near the $112 and $110 levels. Any further losses are likely to lead the price back towards the $100 support zone in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently just above the 50 level, with a flat structure.

Major Support Level – $112

Major Resistance Level – $120

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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