- ETH price is forming a decent support above the $165 level against the US Dollar.
- There is a major bearish trend line in place with resistance at $193 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair may slowly correct higher towards the $188, $192 and $194 resistance levels.
Ethereum price is trading in a range versus the US Dollar and Bitcoin. ETH/USD could trade higher towards the $192-194 resistance area in the near term.
Ethereum Price Analysis
This past week, we saw a major decline from the $223 swing high in ETH price against the US Dollar. The ETH/USD pair fell below the $212, $200, $196 and $180 support levels. The price traded close to the $165 level and formed a monthly low. Later, the price started a short term recovery and moved above the $170 resistance. However, the price struggled to break the $178-179 resistance. It represents the 23.6% Fib retracement level of the last drop from the $223 high to $165 low.
It seems like the price may consolidate in the short term above the $165 level. Later, it could surpass the $178-179 resistance to extend the recovery. However, there is a major resistance waiting on the upside near the $192-194 zone. Moreover, there is a major bearish trend line in place with resistance at $193 on the 4-hours chart of ETH/USD. The trend line coincides with the 50% Fib retracement level of the last drop from the $223 high to $165 low. Besides, the 100 simple moving average on the same chart is also near $194-195.
The above chart indicates that ETH price is likely preparing for an extended correction above $179. However, upsides will most likely face sellers near $194. Finally, the price could decline once again towards $170 and $165.
4-hours MACD – The MACD is slightly placed in the bullish zone.
4-hours RSI – The RSI is currently moving higher towards the 50 level.
Major Support Level – $165
Major Resistance Level – $194
Author: Aayush Jindal