Ethereum Price Analysis: ETH Recovery Reaches Crucial Turning Point
- Ethereum price started a solid recovery after it traded as low as $163 against the US Dollar.
- ETH price is currently trading near a major resistance area close to the $180 level.
- There is a crucial bearish trend line forming with resistance near $181 on the 4-hours chart (data feed from Coinbase).
- The price could either restart its downtrend or it might climb further above $180 and $185.
Ethereum price is rebounding above the $175 level against the US Dollar. However, ETH price must break the $180-$181 resistance are to continue higher.
Ethereum Price Analysis
This past week, Ethereum price extended its decline below the key $180 and $175 supports against the US Dollar. The ETH/USD pair even broke the $170 support and the 55 simple moving average (4-hours). Finally, the price traded towards $160 and formed a swing low at $163. Later, there was a decent support base formed above the $163 and $165 levels.
As a result, the price started an upside correction above the $170 resistance. Moreover, there was a break above the 23.6% Fib retracement level of the last key decline from the $194 high to $163 low. The price even climbed above the $175 level and the 55 simple moving average (4-hours). However, the upward move was capped by the main $180 and $181 resistance levels.
Additionally, there is a crucial bearish trend line forming with resistance near $181 on the 4-hours chart. It seems like the price is struggling above the 50% Fib retracement level of the last key decline from the $194 high to $163 low. Therefore, a convincing close above the trend line and $182 is needed for more gains in the coming sessions. The next key resistance is at $188 plus the 76.4% Fib retracement level of the last key decline from the $194 high to $163 low.
Conversely, the price could start a fresh decline if there is no upside break above $180 and $181. An initial support is near the $175 level. If there are more downsides, the price could correct towards the $170 support level in the near term.
Looking at the chart, Ethereum price is trading near a major turning point at $180 and $181. A successful close above $182 is needed for bullish continuation. If not, the price is likely to resume its downtrend below the $175 and $170 levels in the near term.
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently correcting towards the 60 level.
Key Support Levels – $175, followed by the $170 zone.
Key Resistance Levels – $182 and $188.