Ethereum surged to a new 2020 high at $187 and it is currently correcting lower against the US Dollar, similar to bitcoin. ETH price must stay above $178 to continue higher in the near term.
- ETH price is currently correcting lower from the $187 yearly high against the US Dollar.
- The price could decline heavily if it breaks the $178 and $175 support levels.
- There is a crucial bullish trend line forming with support near $178 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could either surge again above $187 or it might extend its correction towards $170.
Ethereum Price Testing Important Support
This past week, Ethereum managed to outpace bitcoin, with strong gains above the $170 level against the US Dollar. ETH price even broke the $180 resistance and settled above the 100 simple moving average (4-hours).
It traded to a new 2020 high at $187 and recently started a downside correction. There was a break below the 23.6% Fib retracement level of the last upward move from the $170 swing low to $187 high.
Ethereum price is now trading near the $180 support area. Besides, there is a crucial bullish trend line forming with support near $178 on the 4-hours chart of ETH/USD.
More importantly, the 50% Fib retracement level of the last upward move from the $170 swing low to $187 high is also near the $178 level. Therefore, a downside break below the $178 support level might spark a strong decline in the short term.
The next main support is near the $175 level, below which there is a risk of a downside extension towards the $170 support and pivot area. The 100 simple moving average (4-hours) is also positioned near the $168-$170 support area.
ETH To $200?
If Ethereum bulls are able to protect the $178 support and the trend line, there are chances of a fresh increase. On the upside, an initial resistance is near the $184 level and a connecting bearish trend line on the same chart.
A successful break above the $184 barrier will most likely open the doors for a larger upward move in the coming sessions. An immediate resistance is near the $187-$188 area. A clear break above $188 is likely to lead the price towards the $200 handle in the near term.
4 hours MACD – The MACD for ETH/USD is slowly moving in the bearish zone.
4 hours RSI – The RSI for ETH/USD is currently declining and approaching the 50 level.
Major Support Level – $178
Major Resistance Level – $188
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial…
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