Ethereum Rallies 15% To Test Key Downtrend Resistance, Bears Strength Tested

Aayush Jindal

1 year ago

2 mins read

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Ethereum is up more than 15% and it broke the $130 resistance area against the US Dollar. ETH price is now facing a few important downtrend resistances near $142 and $145.

Ethereum is gaining traction and it recently surged above $130 and $135 against the US Dollar.
The bears are now defending more gains above the $140 and $142 levels.
There is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also up more than 15% and it tested the key $6,400-$6,500 resistance area.

Ethereum Price Rally Facing Hurdles

After trading in a range for a few sessions, Ethereum gained strength above the $125 resistance against the US Dollar. ETH price broke a key hurdle near the $130 level to start a solid rally.

The bulls gained momentum and the price surged above the $135 level. Besides, there was a close above the $135 level and the 100 hourly simple moving average. The price traded to a new weekly high at $144, where the bears emerged.

It seems like the previous important supports near $142-$145 are now acting as a barrier for the bulls. Ethereum is currently correcting lower from the $143 swing high.

It is testing the 23.6% Fib retracement level of the recent rally from the $110 low to $143 high. On the downside, there are many supports forming near the $130 level. More importantly, there is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD.

The 50% Fib retracement level of the recent rally from the $110 low to $143 high is also near the $126 level to act as a strong support along with the 100 hourly SMA. Therefore, a downside correction towards the $130 and $126 levels may perhaps find a solid buying interest in the near term.

Upside Extension

On the upside, Ethereum is facing a series of crucial hurdles, starting with $142 and up to $150. To move into an uptrend and start a strong rally, the price must settle above the $150 resistance level.

If not, it is likely to slide back towards the $126 and $122 levels in the coming sessions. The main support is now forming near the $120 level.

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 correcting lower from well above the 60 level.

Major Support Level – $130

Major Resistance Level – $142

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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