- ETH price started a short term upside correction and moved above $196 against the US Dollar.
- There is a key connecting bearish trend line formed with resistance at $198 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair recently tested the previous support at $198, which acted as a solid resistance.
Ethereum price is slowly recovering against the US Dollar and bitcoin. However, ETH/USD is likely to face a lot of hurdles near $198 and 100 hourly SMA.
Ethereum Price Analysis
Yesterday, there was a major downside move below the $198 support in ETH price against the US Dollar. The ETH/USD pair declined below the $195 level and traded towards the $190 level. It traded as low as $190.91 settled below the 100 hourly simple moving average. Later, the price started an upside correction and traded above the $194 and $195 levels.
Buyers also pushed the price above the 23.6% Fib retracement level of the last drop from the $204 swing high to $190 swing low. The price also moved above the $196 level, but it faced a strong resistance near the $198 level. The stated $198 level was a support earlier and now it is acting as a resistance along with the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the last drop from the $204 swing high to $190 swing low is also near the $198 level. More importantly, there is a key connecting bearish trend line formed with resistance at $198 on the hourly chart of ETH/USD.
Looking at the chart, ETH price is facing a tough challenge near the $198 and $199 levels. As long as the price is below these resistances, it could resume its decline below $196. On the downside, the $190 level is a solid support followed by the $185 level.
Hourly MACD – The MACD is currently placed in the bullish zone.
Hourly RSI – The RSI is back above the 50 level.
Major Support Level – $190
Major Resistance Level – $198
Author: Aayush Jindal