Ethereum Lacks Momentum Above $200 But An Upsurge Seems Imminent

Aayush Jindal

1 year ago

2 mins read

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Ethereum is trading above the $192 and $195 support levels against the US Dollar. ETH price could start a strong surge if there is a clear break above the $205 resistance.

ETH price is trading just below a crucial resistance near the $205 level against the US Dollar.
It is now trading above $192 and the 100 simple moving average (4-hours).
There is a major bearish trend line forming with resistance near $202 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could start a significant rally if it breaks $202 and $205 in the near term.

Ethereum Price Eyeing Upside Break

This past week, Ethereum recovered nicely and climbed above the $188 pivot level against the US Dollar. ETH price even broke the $192 resistance zone and settled above the 100 simple moving average (4-hours) (similar to bitcoin).

The price was able to trade above the 50% Fib retracement level of the last key decline from the $215 high to $176 swing low. However, the price is facing a strong resistance zone near the $204 and $205 levels.

The previous breakdown zone near the $205 level is acting as a key hurdle for Ether. The 76.4% Fib retracement level of the last key decline from the $215 high to $176 swing low is also acting as a resistance at $206.

More importantly, there is a major bearish trend line forming with resistance near $202 on the 4-hours chart of ETH/USD. The pair is currently trading above $192 and the 100 simple moving average (4-hours).

To start a significant upward move, Ethereum must break the trend line, $205, and $206 levels. A successful break and close above $206 could open the doors for a larger rally in the near term.

The next major resistance is near the $215 level, above which the price might rise steadily towards the $220 and $230 resistance levels.

Downside Reaction

If Ethereum fails to continue above the $205 and $206 resistance levels, there are chances of a bearish reaction in the near term.

An initial support is near the $197 level and the 100 simple moving average (4-hours). The main support is near the $192 level, below which the price is likely to accelerate lower towards the $180 level.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is struggling to gain momentum in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently declining towards the 50 level.

Major Support Level – $192

Major Resistance Level – $206

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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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