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Ethereum is trading in a contracting range below the $175 resistance against the US Dollar. ETH price seems to be setting up for the next move either above $200 or towards $152.
- Ethereum is facing a strong resistance near the $172 and $175 levels.
- The 100 hourly simple moving average at $165 is likely to act as a strong support and breakdown zone.
- There is a crucial contracting triangle forming with resistance near $172 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair could either rally above $175 or it might decline significantly below the 100 hourly SMA.
Ethereum Price Holding 100 Hourly SMA
After forming a swing high near the $175 level, Ethereum started trading in a contracting range against the US Dollar. ETH price corrected a few points and traded below the $170 level.
The bears pushed the price below the 23.6% Fib retracement level of the upward move from the $138 swing low to $175 high. However, the $160-$161 zone acted as a strong support for the bulls.
It seems like the 38.2% Fib retracement level of the upward move from the $138 swing low to $175 high also provided support. As a result, the price started trading in a contracting range above the $160 support.
At the moment, Ethereum is trading near the $165 level and the 100 hourly simple moving average. There is also a crucial contracting triangle forming with resistance near $172 on the hourly chart of ETH/USD.
The triangle support and the 100 hourly SMA are important barriers for the bears. If they succeed in clearing the 100 hourly SMA, the price might even dive below the $160 support.
The next major support is visible near the $152 level. Any further losses may perhaps lead the price towards the $144 support.
Chances of an Upside Break
On the upside, there are key hurdles forming near the $172 and $175 levels. A clear break above the triangle resistance and then a follow up move above the $175 barrier is needed for a sustained upward move.
The next key resistance is near the $180 level, above which the bulls are likely to aim a test of the $188 level. The final target for the bulls above $175 might be the $200 handle in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $165
Major Resistance Level – $175
