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Ethereum is still struggling to clear the main $200 resistance against the US Dollar. ETH could start a short term downside correction if it continues to struggle near $200.
- Ethereum is currently trading in a range below the $200 and $202 resistance levels.
- The price is showing a few bearish signs below the $200 pivot level.
- There is a major bullish trend line forming with support near $194 on the hourly chart of ETH/USD (data feed via SimpleFX).
- The pair could either rally above $200 or start a downside correction towards the $188 level.
Ethereum Price Facing Key Resistance
In the past few sessions, there were mostly bullish moves above the $190 level in Ethereum against the US Dollar. ETH price is forming a strong support base above $190, but it is also struggling to gain momentum above the $198-$200 resistance area.
Recently, there was a fresh upward move from the $192 swing low. The price climbed above the $196 level, but it failed to continue above the $198-$200 resistance area. A high is formed near $198 and the price is currently consolidating.
Ethereum is trading below the 23.6% Fib retracement level of the recent move from the $192 swing low to $198 high. On the downside, there is a strong support forming near the $194 and $195 levels.
More importantly, there is a major bullish trend line forming with support near $194 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent move from the $192 swing low to $198 high.
On the upside, Ether buyers are facing a crucial resistance near the $200 level. A successful daily close above the $200 level is needed for a sustained upward move. The next key resistance above $200 is near $212. Any further gains could lead the price towards the $220 and $225 levels.
Downside Correction?
Ethereum is clearly facing a major hurdle near the $200 level. If the bulls continue to struggle near the $200 level, there is a risk of a bearish reaction in the near term.
A downside break below the $194 support might lead the price towards the $190 level. The first key support is near the $188 level, below which it could test the $180 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 50 level.
Major Support Level – $194
Major Resistance Level – $200
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