Ethereum (ETH) Price Signaling Bullish Breakout, Buying Dips Favored

Aayush Jindal

1 year ago

2 mins read

sleepwalking, technical analysis ethereum

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ETH price climbed higher nicely after forming a support base above $165 against the US Dollar.
The price broke the key $175 and $180 resistance levels to move to a new yearly high near $188.
There was a break above a major bearish trend line with resistance at $172 on the hourly chart of ETH/USD (data feed via Kraken).
The pair tested a crucial technical level and it might correct lower in the short term towards $180.

Ethereum price climbed to a new yearly high, with swing moves versus the US Dollar and bitcoin. ETH is likely to continue higher and buying dips close to $180 and $174 might be a good idea.

Ethereum Price Analysis

After a major downside correction, Ethereum price found support near the $154 area against the US Dollar. The ETH/USD pair rebounded and slowly climbed above the $164 and $165 resistance levels. Later, there was a close above the $168 level and the 100 hourly simple moving average. Buyers gained control and pushed the price above the 61.8% Fib retracement level of the last drop from the $180 high to $154 swing low. It opened the doors for more gains above the $175 and $180 resistance levels.

Besides, there was a break above a major bearish trend line with resistance at $172 on the hourly chart of ETH/USD. The pair broke the last swing high near $180 and traded to a new yearly high near $188. More importantly, it tested the 1.236 Fib extension level of the last drop from the $180 high to $154 swing low. At the outset, the price seems to be consolidating gains near $185. It could correct a few points towards the $180 support in the near term (the previous resistance).

If there is a downside extension, the price may even correct towards the $175 or $174 support area. The price remains well supported on dips and it seems like $180 or $175 support is likely to act as a strong buying area. On the upside, the price could surge above the $188 and $190 resistance levels. The next stop for Ethereum may be $200, where sellers are likely to emerge.

Looking at the chart, Ethereum price clearly broke to the upside above the $175 and $180 resistance levels. Both the stated levels are likely to act as supports if the price corrects lower from $188. Overall, the price is trading with a positive bias, with chances of more gains above $190.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining strength in the bullish zone.

Hourly RSI – The RSI for ETH/USD broke a bearish trend line and climbed sharply above the 75 level.

Major Support Level – $180

Major Resistance Level – $190

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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