Ethereum seems to be struggling near the key $120 resistance area against the US Dollar. ETH price must climb above the 100 hourly SMA to start a strong increase in the near term.
- Ethereum is trading in a negative zone below the $120 resistance area against the US Dollar.
- The bulls are active and they made a couple of attempts to surpass $120.
- There was a break above a connecting bearish trend line with resistance near $116 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is trading with a strong buying interest above the $5,000 support area.
Ethereum Price is Facing Hurdles
After a decent upward move, Ethereum climbed above the $115 resistance against the US Dollar. ETH price even broke the $120 resistance, but it remained below the 100 hourly simple moving average.
It seems like the bulls made a couple of attempts to gain strength above $120 and the 100 hourly simple moving average, but they failed. Besides, there was a break above a connecting bearish trend line with resistance near $116 on the hourly chart of ETH/USD.
The last swing high was near the $121 level and the price is currently trading lower. Ethereum is testing the 23.6% Fib retracement level of the upward move from the $100 low to $121 high.
On the upside, there is a strong resistance forming near the 100 hourly SMA and $120. If the bulls are successful in gaining strength above the $120 level, the price could start a strong increase. The next resistance is near the $125 level, above which the bulls are likely to aim $130.
Any further gains is likely to improve the market sentiment and the price may perhaps rise towards the $150 level.
Another Rejection?
On the downside, an initial support for Ethereum is near the $112 level. It is close to the 50% Fib retracement level of the upward move from the $100 low to $121 high.
The next support is near the $110 level, below which the price is likely to accelerate lower towards the $105 level. Any further losses are likely to lead the price back towards the $100 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently sliding and it is close to the 50 level.
Major Support Level – $112
Major Resistance Level – $120
