This Scenario Could Trigger A New Ethereum Rally: Key Levels To Watch

Aayush Jindal

1 year ago

2 mins read

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Ethereum is currently trading above the $205 and $208 support levels against the US Dollar. ETH price could start a strong increase if it clears the $215 and $216 resistance levels.

Ethereum is showing a lot of positive signs above the key $205 support zone.
The price is currently trading above $210 and it is well above the 100 hourly simple moving average.
Yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must surpass the $215 and $216 resistance levels for a sustained upward move.

Ethereum Price Holding Uptrend Support

Ethereum price started a short term downside correction after it failed to clear the $216 resistance against the US Dollar. ETH price corrected lower and traded below the $212 support level.

The price even spiked below the $210 level, but it stayed well above the 100 hourly simple moving average. During the decline, ether price traded below the 50% Fib retracement level of the upward move from the $206 low to $216 high.

However, the bulls are currently defending the $208 support zone. The 61.8% Fib retracement level of the upward move from the $206 low to $216 high is also acting as a key support.

It seems like yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD. On the upside, an initial resistance is forming near the $214 level and a connecting bearish trend line.

If there is a clear break above the trend line, the price could attempt to surpass the main $215 and $216 resistance levels. A successful close above the $216 level is likely to open the doors for a strong push towards the $225 and $230 levels in the near term.

Bearish Wave?

If Ethereum fails to clear the $215 and $216 resistance levels, there are chances of an extended decline. The next support below the trend line is near the $206 level and the 100 hourly simple moving average.

A downside break below the $205-$206 support zone could open the doors for a large decline. In the mentioned case, the bulls may perhaps struggle to protect the $200 support zone.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently near the 50 level, with a bearish angle.

Major Support Level – $206

Major Resistance Level – $216

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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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