Ethereum is Primed For a Rally And Only 1 Thing is Holding it Back

Aayush Jindal

1 year ago

2 mins read

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Ethereum is still facing a strong resistance near the $142 and $144 levels against the US Dollar. A successful close above $144 could start a strong increase in ETH price in the near term.

Ethereum is struggling to gain bullish momentum above the $142 zone against the US Dollar.
The price is currently trading nicely above the $135 support and the 100 hourly simple moving average.
There is a key declining channel forming with resistance near $142 on the hourly chart of ETH/USD (data feed via Kraken).
The bulls are likely to make another attempt to clear the $142 and $144 resistance levels.

Ethereum Price Trading in a Positive Zone

Yesterday, we discussed the importance of the $142 and $144 resistance levels for Ethereum against the US Dollar. Recently, ETH price made another attempt to clear the $142 hurdle, but it failed.

A swing high is formed near $142 and the price is currently correcting gains. It traded below the 23.6% Fib retracement level of the recent rise from the $133 low to $142 high.

It seems like there is a key declining channel forming with resistance near $142 on the hourly chart of ETH/USD. An initial support on the downside is near the $138 level. The first major support is seen near the $136 level. It is close to the 50% Fib retracement level of the recent rise from the $133 low to $142 high.

The main support is now forming near the $135 level and the 100 hourly simple moving average. Any further losses may perhaps put a lot of pressure on Ethereum bulls and the price could decline below $132. The next major support is near the $125 level.

Upside Break?

On the upside, the first major hurdle for Ethereum is near the $142 level. The main hurdle is now near the $144 level. A successful break above the channel resistance, $142, and $144 is needed to start a strong increase in the near term.

In the stated scenario, the price is likely to accelerate higher towards the $150 and $155 resistance levels. Any further gains could lead the price towards the $165 level in the coming days.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently well above the 50 level, with a positive bias.

Major Support Level – $135

Major Resistance Level – $144

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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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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