This Scenario Will Trigger A New Ethereum Rally: Key Levels To Watch 2020-02-05

Aayush Jindal

1 year ago

2 mins read

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Ethereum price is holding a couple of key supports above $185 against the US Dollar. ETH is likely to surge above $190 and continue higher in the near term.

Ethereum is trading nicely above the $185 support area against the US Dollar.
The price is likely to climb above the $190 barrier to start a fresh increase.
There is a major declining channel forming with resistance near $190 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is now trading near the key $9,200 support area.

Ethereum Price Could Rally Again

After trading to a new 2020 high at $195, Ethereum started a downside correction against the US Dollar. ETH price traded below the $192 and $190 support levels.

However, the $185 support area acted as a strong buy zone along with the 100 hourly simple moving average. Besides, the 61.8% Fib retracement level of the recent wave from the $178 low to $195 high acted as a support.

A swing low is formed near $184 and the price is currently rising. It broke the 23.6% Fib retracement level of the recent decline from the $195 high to $184 low. At the moment, Ethereum is trading near the $190 resistance area.

More importantly, there is a major declining channel forming with resistance near $190 on the hourly chart of ETH/USD. Besides, the 50% Fib retracement level of the recent decline from the $195 high to $184 low is near the $190 level.

If there is an upside break above the $190 level, the price is likely to rise sharply. The next major hurdle is near the $195 level, above which there are chances of a strong rise in the coming sessions.

Key Support for ETH

On the downside, the main support is near the $185 level. If there is a downside break below the $185 and $184 support levels, there is a risk of a larger decline.

The next major support is near the $180 level, followed by the $178 pivot level. Ethereum must stay above the $180 and $178 support levels to avoid a nasty decline. A successful close below the $178 support level might turn the market sentiment to bearish in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently near the 50 level, with a minor bearish angle.

Major Support Level – $185

Major Resistance Level – $190

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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