Ethereum Breaking This Single Level Will Spark a Strong Rally
Ethereum is still struggling to clear the main $135 resistance area against the US Dollar. ETH price must break the $135 hurdle to start a strong rally in the coming sessions.
- Ethereum is currently consolidating below the main $135 resistance against the US Dollar.
- The price is likely to find a decent support near the $130 region.
- There was a break below a connecting bullish trend line with support near $133 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct a few points towards $130 before it makes another attempt to clear $135.
Ethereum Price Facing Hurdles
Yesterday, there was a decent rise in Ethereum above the $130 resistance area against the US Dollar. ETH price gained pace above the $132 level and the 100 hourly simple moving average.
However, the price struggled to gain strength above the main $135 resistance area. The bulls made more than two attempts to clear the $135 barrier, but they failed. A swing high is formed near $135.40 and the price is currently correcting lower.
There was a break below a connecting bullish trend line with support near $133 on the hourly chart of ETH/USD. Ethereum even traded below the 23.6% Fib retracement level of the upward move from the $124 low to $135 high.
The price is currently finding bids near the $132 level and the 100 hourly SMA. If there are more downsides, the price could test the $130 support level.
The 50% Fib retracement level of the upward move from the $124 low to $135 high is also near the $130 zone to act as a strong support. Any further losses may perhaps start a substantial decline towards $124.
Chances of a Fresh Rally
If Ethereum remains well bid above the $130 support area, it could make another attempt to clear the key $135 resistance zone.
A successful close above the $135 resistance and a follow through later is likely to spark a solid rally in the coming sessions. The next key resistance is near the $142 level, above which the bulls are likely to aim a test of the $150 level.
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is still near the 50 level, with a positive angle.
Major Support Level – $130
Major Resistance Level – $135
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Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial…
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