Ethereum Could Recover Significantly If It Clears The $130 Resistance: Here’s Why

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum is currently holding the key $100 support zone against the US Dollar. ETH price is slowly recovering and it seems to be eyeing a crucial upside break above $126 and $130.

Ethereum is slowly recovering from the $100 support area against the US Dollar.
It is trading above the $110 level, but facing a lot of hurdles on the upside near $126 and $130.
Two key bearish trend lines are forming with resistance near $128 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is back above the $5,000 support area and it is slowly recovering.

Ethereum Price Approaching Key Resistance

Yesterday, there was a fresh decline in Ethereum from the $130 resistance area against the US Dollar. ETH price broke the $120 and $115 support levels to move back into a bearish zone.

The bears were able to push the price below the $110 level and the price settled well below the 100 hourly simple moving average. A new weekly low is formed near $100, where the bulls emerged.

As a result, Ethereum started an upside correction and traded above the $108 and $110 levels. There was a break above the 23.6% Fib retracement level of the downward move from the $134 swing high to $100 low.

The price is now trading near the $118 and $120 resistance levels. It seems like the 50% Fib retracement level of the downward move from the $134 swing high to $100 low is acting as a strong hurdle.

More importantly, two key bearish trend lines are forming with resistance near $128 on the hourly chart of ETH/USD. The 100 hourly simple moving average is also positioned near the $127 level to stop the bulls.

Therefore, a successful close above the $130 resistance and the 100 hourly SMA is needed to start a strong increase in the near term. The next key hurdle for the bulls is near the $144 and $145 levels.

Another Failure?

If Ethereum struggles to continue above the $128 and $130 resistance levels, it could start another drop. An initial support is near the $110 and $108 level.

A clear break below the $108 support may perhaps lead the price towards the $100 support area. Any further losses are likely to spark a panic sell move and the price could drop towards $90 or $85.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently rising and it is above the 50 level.

Major Support Level – $108

Major Resistance Level – $128

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.