Ethereum Breaking This Single Level Will Spark a Strong Rally

Aayush Jindal

1 year ago

2 mins read

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Ethereum is still struggling to clear the main $135 resistance area against the US Dollar. ETH price must break the $135 hurdle to start a strong rally in the coming sessions.

Ethereum is currently consolidating below the main $135 resistance against the US Dollar.
The price is likely to find a decent support near the $130 region.
There was a break below a connecting bullish trend line with support near $133 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct a few points towards $130 before it makes another attempt to clear $135.

Ethereum Price Facing Hurdles

Yesterday, there was a decent rise in Ethereum above the $130 resistance area against the US Dollar. ETH price gained pace above the $132 level and the 100 hourly simple moving average.

However, the price struggled to gain strength above the main $135 resistance area. The bulls made more than two attempts to clear the $135 barrier, but they failed. A swing high is formed near $135.40 and the price is currently correcting lower.

There was a break below a connecting bullish trend line with support near $133 on the hourly chart of ETH/USD. Ethereum even traded below the 23.6% Fib retracement level of the upward move from the $124 low to $135 high.

The price is currently finding bids near the $132 level and the 100 hourly SMA. If there are more downsides, the price could test the $130 support level.

The 50% Fib retracement level of the upward move from the $124 low to $135 high is also near the $130 zone to act as a strong support. Any further losses may perhaps start a substantial decline towards $124.

Chances of a Fresh Rally

If Ethereum remains well bid above the $130 support area, it could make another attempt to clear the key $135 resistance zone.

A successful close above the $135 resistance and a follow through later is likely to spark a solid rally in the coming sessions. The next key resistance is near the $142 level, above which the bulls are likely to aim a test of the $150 level.

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 still near the 50 level, with a positive angle.

Major Support Level – $130

Major Resistance Level – $135

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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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