Ethereum Trading Near Make-or-Break Levels: Key Supports To Watch

Aayush Jindal

1 year ago

2 mins read

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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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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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