Ethereum Price Analysis: ETH Bulls Comeback Could Gain Momentum
- ETH price traded to a new weekly low near $131 and later climbed higher sharply against the US Dollar.
- The price broke a few important resistances near the $133 and $134 levels.
- This week’s followed major bearish trend line was breached with resistance at $135 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now trading nicely above the $135 level and it may continue to rise towards the $138 resistance.
Ethereum price reacted sharply after testing major supports against the US Dollar and bitcoin. ETH jumped above the $135 resistance and it seems like buyers are back in action.
Ethereum Price Analysis
Yesterday, we saw a sharp decline in ETH price below the $134 support level against the US Dollar. The ETH/USD pair even broke the $132 support and the 100 hourly simple moving average. A new weekly low was formed near $131 and later the price started a fresh upward move. There were a couple of swing moves near the $134 level, but later buyers gained traction and pushed the price higher. There was a decent comeback and the price rallied above the $134 and $135 levels.
Moreover, this week’s followed major bearish trend line was breached with resistance at $135 on the hourly chart of ETH/USD. The pair even climbed above the $136 resistance and settled above the 100 hourly simple moving average. It traded as high as $137 and currently correcting lower. An initial support is near the 23.6% Fib retracement level of the recent wave from the $131 swing low to $137 high. The main support is near the $134 level, which acted as a strong resistance earlier.
Lastly, the 50% Fib retracement level of the recent wave from the $131 swing low to $137 high is also near the $134 level. Therefore, if the price corrects lower, the $135 and $134 levels are likely to act as strong supports. On the upside, a break above the $137 high might push the price towards the $138 level. However, the main resistances are near the $138 and $139 levels.
Looking at the chart, ETH price clearly bounced back after carving a new low near the $131 level. Having said that, there are still many hurdles for buyers near the $137 and $138 levels. Sellers might take a stand near $138 and there may be a bearish reaction. If buyers clear the $138 barrier, there could be more gains above $140.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD jumped sharply and it is currently well above the 70 level.
Major Support Level – $134
Major Resistance Level – $138
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