Sun. May 31st, 2020

Ethereum Flirts With Key Resistance But Here’s Why Bulls Are Comfortable

Ethereum is gaining bullish momentum above $190 area against the US Dollar, and turned green vs bitcoin. ETH price is currently consolidating gains, but it is likely to surge above $200.

ETH price is trading nicely above the $188 and $185 support levels against the US Dollar.
A new monthly high is formed near $198 and the price is currently consolidating gains.
There is a short term contracting triangle forming with resistance near $198 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could correct a few points, but the bulls are comfortable above $188 and $185.

Ethereum Price is in Bullish Zone
This past week, Ethereum remained in an uptrend above the $155 and $160 levels area against the US Dollar. ETH price gained bullish momentum and it surged above the $180 resistance.
There was even a break above the $188 barrier and a close above the 100 simple moving average (4-hours). The price traded to a new monthly high near $198 and it is currently consolidating gains.
Ethereum is testing the 23.6% Fib retracement level of the recent wave from the $178 swing low to $198 high. On the downside, an initial support is near the $192 level. The first major support is near the $188 level (the recent breakout zone).
The 50% Fib retracement level of the recent wave from the $178 swing low to $198 high is also near the $188 level to provide support. On the upside, an immediate resistance is near the $198 level.
More importantly, there is a short term contracting triangle forming with resistance near $198 on the 4-hours chart of ETH/USD. If there is an upside break above $198, the price could easily surge above $200.
Ethereum Price
The next resistance is near the $205 level, above which the price is likely to climb nicely towards the $220 and $225 levels in the coming sessions.
Downside Correction
The first major support is near the $188 level, below which Ethereum could face an increase in selling interest. The next key support is near the $186 level and a connecting bullish trend line on the same chart.
The main support is near the $185 level. Any further losses might lead the price towards the $175 support or the 100 simple moving average (4-hours).
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 65 level.
Major Support Level – $185
Major Resistance Level – $200
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