• Ethereum is correcting lower from $135 and it is trading above $125 against the US Dollar.
• The price is likely to remain in a positive zone as long as it is above $120.
• There is a breakout pattern forming with resistance near $128 on the hourly chart of ETH/USD (data feed via Kraken).
• Bitcoin is showing green signals as it settled nicely above the $7,000 resistance area.

Ethereum price is consolidating above $125 versus the US Dollar, similar to bitcoin above $7,000. ETH price might dip a few points, but it could surge again as long as above $120.

Ethereum Price Analysis

Recently, we saw a sharp recovery wave in Ethereum from the $115 monthly low against the US Dollar. ETH price rallied above the $120 and $125 resistance levels.

Moreover, there was a break above the $130 resistance and the 100 hourly simple moving average. Similarly, bitcoin price climbed sharply above $6,800 and settled above the $7,000 level.

Ethereum traded as high as $135 and recently started a downside correction. It traded below $130 and the 100 hourly SMA. Besides, there was a break below the 23.6% Fib retracement level of the recent jump from the $115 low to $135 high.

However, the price seems to be finding bids near the $126 and $125 levels. More importantly, the 50% Fib retracement level of the recent jump from the $115 low to $135 high is near the $125 level.

At the moment, there is a breakout pattern forming with resistance near $128 on the hourly chart of ETH/USD. The pair is likely preparing for the next break either above $128 or below $125.

If there is an upside break above $128, the price could test $130 and the 100 hourly SMA. Additionally, a close above the $130 level could start another increase towards the $135 resistance area.

Conversely, the price might spike below the $126 and $125 support levels. In this case, the $120 support holds a lot of importance. As long as there is no close below $120, the price could bounce back. If not, the price is likely to resume its downtrend below the $115 low in the near term.

Looking at the chart, Ethereum price is clearly consolidating above the key $125 support. In the short term, there could be a downside spike below $125, but the price might bounce back. Similarly, bitcoin price remains well bid above $7,000 and $6,960.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently in the neutral zone.

Hourly RSI – The RSI for ETH/USD is just below the 50 level, with positive signs.

Major Support Level – $125

Major Resistance Level – $130