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Ethereum Rallies 15% To Test Key Downtrend Resistance, Bears Strength Tested

Ethereum is up more than 15% and it broke the $130 resistance area against the US Dollar. ETH price is now facing a few important downtrend resistances near $142 and $145.

  • Ethereum is gaining traction and it recently surged above $130 and $135 against the US Dollar.
  • The bears are now defending more gains above the $140 and $142 levels.
  • There is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is also up more than 15% and it tested the key $6,400-$6,500 resistance area.

Ethereum Price Rally Facing Hurdles

After trading in a range for a few sessions, Ethereum gained strength above the $125 resistance against the US Dollar. ETH price broke a key hurdle near the $130 level to start a solid rally.

The bulls gained momentum and the price surged above the $135 level. Besides, there was a close above the $135 level and the 100 hourly simple moving average. The price traded to a new weekly high at $144, where the bears emerged.

It seems like the previous important supports near $142-$145 are now acting as a barrier for the bulls. Ethereum is currently correcting lower from the $143 swing high.

It is testing the 23.6% Fib retracement level of the recent rally from the $110 low to $143 high. On the downside, there are many supports forming near the $130 level. More importantly, there is a connecting bullish trend line forming with support near $126 on the hourly chart of ETH/USD.

Ethereum Price

Ethereum Price

The 50% Fib retracement level of the recent rally from the $110 low to $143 high is also near the $126 level to act as a strong support along with the 100 hourly SMA. Therefore, a downside correction towards the $130 and $126 levels may perhaps find a solid buying interest in the near term.

Upside Extension

On the upside, Ethereum is facing a series of crucial hurdles, starting with $142 and up to $150. To move into an uptrend and start a strong rally, the price must settle above the $150 resistance level.

If not, it is likely to slide back towards the $126 and $122 levels in the coming sessions. The main support is now forming near the $120 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving back into the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently correcting lower from well above the 60 level.

Major Support Level – $130

Major Resistance Level – $142

Ethereum Rallies 15% To Test Key Downtrend Resistance, Bears Strength Tested was last modified: March 20th, 2020 by Aayush Jindal

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