Ethereum Price Analysis: Real Bounce In ETH Or Just Rebound?

  • ETH price climbed higher sharply and broke the $127 and $130 resistances against the US Dollar.
  • The price even broke the $134 resistance and retested the key $139 resistance level.
  • Yesterday’s highlighted key bearish trend line was breached with resistance at $130 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair rebounded nicely, but as long as it is below $139 and $140, it could decline once again.

Ethereum price surged higher and cleared many hurdles against the US Dollar and bitcoin. However, ETH/USD is still below the key $139 resistance, which could result in a fresh drop.

Ethereum Price Analysis

After a sharp decline, ETH price found support near the $122 level against the US Dollar. The ETH/USD pair started a solid recovery and broke the $124 and $127 resistance levels. Later, it broke the $130 resistance and the 100 hourly simple moving average. Besides, there was a break above the 61.8% Fib retracement level of the last drop from the $135 swing high to $122 swing low. It opened the doors for more gains and the price gained pace above $130 and $132.

During the rise, yesterday’s highlighted key bearish trend line was breached with resistance at $130 on the hourly chart of ETH/USD. Finally, there was a break above the $134 resistance and the price revisited the key $139 resistance. Sellers emerged near $139, resulting in a minor pullback. The price declined below the $136 and $135 levels. There was a spike below the 23.6% Fib retracement level of the recent wave from the $122 low to $139 high.

However, the $134 support acted as a decent buy zone and the price started consolidating gains. The current price action suggests that there could be more losses below $134. The price could drop towards the $130 support and the 100 hourly simple moving average. The 50% Fib retracement level of the recent wave from the $122 low to $139 high is also near the $130 level to act as a support. The next key support is near the $129 level (the previous resistance).

Looking at the chart, ETH price recovered nicely, but it faced a strong resistance near the $139 level. The stated level prevented gains earlier and it may continue to stop buyers near $139 and $140. As long as the price is below $139 and $140, it could decline once again in the near term.

ETH Technical Indicators

Hourly MACDThe MACD for ETH/USD is about to move back in the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently correcting lower towards the 60 level, with a minor bearish angle.

Major Support Level – $134

Major Resistance Level – $139

Author: Aayush Jindal

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