Ethereum is currently trading inside a crucial breakout pattern against the US Dollar. ETH price is likely to start a strong increase once it clears the $205 resistance zone.
Ethereum is still struggling to clear the key $205 and $206 resistance levels.
The price is trading in a range above the $197 support and the 100 hourly simple moving average.
There is a major breakout pattern forming with resistance near $205 on the hourly chart of ETH/USD (data feed via Kraken).
There are chances of a strong rally if there is a clear break above $205.
Ethereum Price is Eyeing Upside Break
Ethereum price made another attempt to clear the key $205 resistance zone against the US Dollar, but it failed. A high is formed near $206 and the price is currently consolidating in a range.
There was a downside correction below the $202 level. The price traded below the 23.6% Fib retracement level of the upward move from the $188 swing low to $206 high.
However, the price is holding an important support near the $197 level and the 100 hourly simple moving average. There is also a major breakout pattern forming with resistance near $205 on the hourly chart of ETH/USD.
The triangle support is close to $197 and the 50% Fib retracement level of the upward move from the $188 swing low to $206 high. On the upside, Ethereum must clear the $205 resistance zone to initiate a strong rally.
If there is a proper close above $205, ether might start a significant rally above the $210 and $215 levels. An initial resistance is near the $220 level. Any further gains could lead the price towards the main $230 resistance zone.
The triangle support, $197, and the 100 hourly SMA could play a major role. If Ethereum fails to stay above the $197 level, there is a risk of a downside break.
The next major support is near the $192 level (the recent breakout zone). If the bulls fail to protect the $192 support zone, there are chances of a sustained downward move towards the $180 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is currently gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is correcting just below the 50 level.
Major Support Level – $197
Major Resistance Level – $205
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Featured image from unsplash.