Ethereum is up more than 15% and it broke the key $ 150 and $ 160 hurdles versus the US Dollar, while bitcoin jumped above $ 8,800. However, the current price action suggests ETH could correct towards $ 160 before it continues higher.
- Ether price rallied significantly after it broke the $ 148 resistance area against the US Dollar.
- The price even surged above the $ 160 level and traded as high as $ 171.
- There is a key bullish trend line forming with support near $ 162 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to correct lower towards $ 162 or $ 160 before it starts a fresh increase.
Ethereum Rally Might Pause In Short Term
Yesterday, we discussed the chances of an upside break in Ethereum above the $ 148 resistance against the US Dollar. ETH price did climb above the $ 148 and $ 150 resistance levels, opening the doors for a sharp rise.
As a result, the bulls tool control and the price rallied more than 15%. It broke the $ 160 and $ 165 resistance levels. Moreover, there was a close above the $ 160 level and the 100 hourly simple moving average.
A high was formed near the $ 171 level and Ethereum seems to be showing signs of a downside correction. It is already below the 23.6% Fib retracement level of the recent rally from the $ 153 low to $ 171 high.
The first key support on the downside is near the $ 162 level. Besides, the 50% Fib retracement level of the recent rally from the $ 153 low to $ 171 high is also near the $ 162 level.
More importantly, there is a key bullish trend line forming with support near $ 162 on the hourly chart of ETH/USD. Therefore, dips in Ethereum remains well supported near the $ 162 and $ 160 levels.
More Upsides In ETH After Correction?
There could be a downside correction towards $ 160 in the short term, but it does not mean the current uptrend is over. After the price completes a downside correction, it is likely to bounce back above $ 165 and $ 170.
The main resistance is near the $ 170-$ 172 zone. A clear break above the $ 172 zone might set the pace for more upsides towards the $ 180 pivot and resistance area, especially if bitcoin surges above the $ 9,000 level.
Hourly MACD – The MACD for ETH/USD is showing signs of a downside correction in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower from the overbought zone.
Major Support Level – $ 162
Major Resistance Level – $ 172