Ethereum Could Rally Significantly And Only 1 Thing is Holding it Back

Ethereum is showing positive signs and it broke the $205 resistance against the US Dollar. ETH price could rally significantly if there is a clear break above the $210 resistance. Ethereum gained traction and managed to climb above the $205 level and the 100 hourly SMA. The price is still struggling to clear the main $210 resistance zone. There is a key bearish trend line forming with resistance near $209 on the hourly chart of ETH/USD (data feed via Kraken). The pair could either rally above $210 or it might start a fresh decrease towards $200. Ethereum Price Approaching Key Resistance Ethereum price started a decent increase from the $196 swing low. ETH price managed to gain traction and climbed above the $204 and $205 resistance levels. There was also a close above the $205 level and the 100 hourly simple moving average. During the rise, there is a key bearish trend line forming with resistance near $209 on the hourly chart of ETH/USD. Ethereum Price However, the price is still struggling to clear the $210 resistance zone. A high is formed near $209 and the price is currently correcting lower. It is trading near the 23.6% Fib retracement level of the recent rise from the $196 swing low to $209 high. The first key support on the downside is near the $205 level and the 100 hourly simple moving average. The next major support is seen near the $202 level. It is close to the 50% Fib retracement level of the recent rise from the $196 swing low to $209 high. On the upside, the price is likely to continue higher if it clears the $210 resistance zone. The next major hurdle is seen near the $220 level, above which it could revisit $230. Another Rejection? If Ethereum continues to struggle near the $210 level, there are chances of another bearish push below $202. If there are more losses, there are chances of another drop towards the $198 and $196 support levels. A successful close below the $198 support zone, the bears are likely to take control and they might aim a test of the $192 support zone in the coming sessions. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a positive angle. Major Support Level – $205 Major Resistance Level – $210 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.

by Aayush Jindal on May 28, 2020 at 02:28PM