Ethereum Price Analysis: ETH Bulls Battling Near Key Support
- ETH price corrected lower recently after trading close to the $140 resistance against the US Dollar.
- The price tested the key $137 support level, which was a resistance earlier.
- There is a new connecting bullish trend line formed with support above $135 on the hourly chart of ETH/USD (data feed via Kraken).
- Bulls are currently battling near the $137 support as the price remains in a bullish zone.
Ethereum price is consolidating above key supports against the US Dollar and bitcoin. ETH could pump higher once it clears the $139 and $140 resistance levels in the near term.
Ethereum Price Analysis
Earlier this week, we saw a sharp upward move in ETH price above the $135 resistance against the US Dollar. The ETH/USD pair even traded above the $137 resistance and the 100 hourly simple moving average. Buyers pushed the price towards the $140 resistance, where it faced a strong selling interest. As a result, the price corrected lower below the $138 support level. However, the previous resistance level near $137 prevented declines and acted as a strong support.
The price recovered recently above the 23.6% Fib retracement level of the recent decline from the $140 swing high to $137 swing low. However, the current price action suggests range moves as the recent recovery was capped by the $139 level. Besides, the 50% Fib retracement level of the recent decline from the $140 swing high to $137 swing low acted as a resistance. It seems like bulls are putting up a strong fight to protect the $137 support area. If there are more losses, the price may test the $136 support and the 100 hourly simple moving average.
More importantly, there is a new connecting bullish trend line formed with support above $135 on the hourly chart of ETH/USD. Therefore, there are many supports on the downside near the $137, $136 and $135 levels. On the upside, the price must gain momentum above the $139 and $140 resistance. If buyers gain bullish momentum, the price is likely to accelerate above the $144 level in the near term.
Looking at the chart, Ethereum price is trading nicely above the $136-137 support area. In the short term, there could be range moves above the $136 level before the price moves higher again. On the upside, a break above the $140 barrier is likely to give buyers more control. In the mentioned case, the price might rally sharply above the $142 and $144 levels.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to jump back in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently placed nicely above the 50 level.
Major Support Level – $136
Major Resistance Level – $140