Ethereum Could See Technical Correction: Key Buy Zones To Watch

Ethereum Could See Technical Correction: Key Buy Zones To Watch
Ethereum is up more than 20% from the $ 150 support area against the US Dollar, and gained traction vs bitcoin. ETH price is correcting lower, but it remains well supported. ETH price is showing a lot of positive signs above the $ 175 and $ 180 levels against the US Dollar. A new monthly high is formed near $ 190 and the price is currently correcting lower. There is a key connecting bullish trend line forming with support near $ 175 on the 4-hours chart of ETH/USD (data feed via Kraken). The pair is likely to bounce back as long as it is above the $ 178 and $ 175 support levels. Ethereum Price is in Strong Uptrend This past week, Ethereum started a strong rise from the $ 150 support area against the US Dollar. ETH price is up more than 20% and it broke many key hurdles near the $ 165 and $ 170 levels. There was also a close above the main $ 175 resistance and the 100 simple moving average (4-hours). During the rise, there was a break above a crucial bearish trend line with resistance near $ 165 on the 4-hours chart of ETH/USD. Ethereum Price The pair extended its rise above $ 180 and tested the $ 190 zone. A new monthly high is formed near $ 190 and the price is currently correcting lower. Ethereum is testing the 23.6% Fib retracement level of the recent rally from the $ 168 swing low to $ 190 high. On the downside, an initial support is near the $ 180 level. It is close to the 50% Fib retracement level of the recent rally from the $ 168 swing low to $ 190 high. More importantly, there is a key connecting bullish trend line forming with support near $ 175 on the same chart. If the price fails to stay above the trend line and the $ 175 support, it could decline towards the $ 160 zone or the 100 simple moving average (4-hours). Upside Extension Once the current correction wave is complete, Ethereum might start a fresh rally above the $ 188 level. An initial resistance for the bulls is near the $ 190 level. A successful close above the $ 190 resistance might open the doors for a larger rally towards the $ 200 and $ 205 levels in the near term. Technical Indicators 4 hours MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone. 4 hours RSI – The RSI for ETH/USD is currently correcting lower from the 70 level. Major Support Level – $ 175 Major Resistance Level – $ 190 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
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