Technicals Suggest Ethereum Needs To Clear $205 For Hopes of a Fresh Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum is slowly rising and it recently broke the $192 resistance against the US Dollar. ETH price must gain bullish momentum above $205 to start a strong rally towards $220 or $230.

Ethereum is moving into a positive zone, with a close above the $192 resistance.
The price is still struggling to clear the $200 and $205 resistance levels.
There is a major bullish trend line forming with support near $195 on the hourly chart of ETH/USD (data feed via Kraken).
A clear break above the $205 barrier is must for a sustained upward move.

Ethereum Price is Approaching a Key Hurdle

Ethereum price remained well bid above the $180 and $185 support levels against the US Dollar. As a result, ETH price started a steady rise and broke the main $192 resistance to move into a positive zone.

The bulls were able to push the price above the $195 level and the 100 hourly simple moving average. The price even spiked above $200 and traded as high as $201.

Ether is currently correcting gains and trading near the $198 level. The first major support is seen near the $195 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent rise from the $188 low to $201 high.

More importantly, there is a major bullish trend line forming with support near $195 on the hourly chart of ETH/USD. If Ethereum corrects lower, it is likely to find a decent support near $195 and the 100 hourly SMA.

On the upside, an initial resistance is near the $200 level. The main resistance is near the $205 level and a connecting bearish trend line on the same chart. If there is a clear break above the $205 resistance zone, the price is likely to accelerate higher towards $220 or even $230.

Downside Correction

The first major support is near the $195 zone. If Ethereum fails to stay above the $195 level, there is a risk of a downside extension towards the $192 level (the recent breakout zone).

The 76.4% Fib retracement level of the recent rise from the $188 low to $201 high is also near the $192 level to stop the bears. Any further losses may restart downtrend and the price might revisit $180.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is correcting lower towards the 60 level.

Major Support Level – $192

Major Resistance Level – $205

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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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