Ethereum Could See Technical Correction: Key Buy Zones To Watch
Ethereum is up more than 20% from the $150 support area against the US Dollar, and gained traction vs bitcoin. ETH price is correcting lower, but it remains well supported.
ETH price is showing a lot of positive signs above the $175 and $180 levels against the US Dollar.
A new monthly high is formed near $190 and the price is currently correcting lower.
There is a key connecting bullish trend line forming with support near $175 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair is likely to bounce back as long as it is above the $178 and $175 support levels.
Ethereum Price is in Strong Uptrend
This past week, Ethereum started a strong rise from the $150 support area against the US Dollar. ETH price is up more than 20% and it broke many key hurdles near the $165 and $170 levels.
There was also a close above the main $175 resistance and the 100 simple moving average (4-hours). During the rise, there was a break above a crucial bearish trend line with resistance near $165 on the 4-hours chart of ETH/USD.
The pair extended its rise above $180 and tested the $190 zone. A new monthly high is formed near $190 and the price is currently correcting lower. Ethereum is testing the 23.6% Fib retracement level of the recent rally from the $168 swing low to $190 high.
On the downside, an initial support is near the $180 level. It is close to the 50% Fib retracement level of the recent rally from the $168 swing low to $190 high.
More importantly, there is a key connecting bullish trend line forming with support near $175 on the same chart. If the price fails to stay above the trend line and the $175 support, it could decline towards the $160 zone or the 100 simple moving average (4-hours).
Once the current correction wave is complete, Ethereum might start a fresh rally above the $188 level. An initial resistance for the bulls is near the $190 level.
A successful close above the $190 resistance might open the doors for a larger rally towards the $200 and $205 levels in the near term.
4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently correcting lower from the 70 level.
Major Support Level – $175
Major Resistance Level – $190
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