Ethereum price traded further lower and tested the $165.00 zone against the US Dollar. ETH/USD is currently correcting higher, but it needs to overcome many hurdles.
- Ethereum price started an upside correction after trading as low as $167.25 against the US Dollar.
- ETH/USD recently broke a key declining channel with resistance at $181.00 on the 2-hours chart.
- The pair is currently following a bullish trend line, but it seems to be struggling to hold gains above $210.00.
Ethereum Price Weekly Analysis
In the last weekly analysis, we discussed that a break below $200.00 in Ethereum price could accelerate losses. The ETH/USD pair broke the $200.00 support and declined heavily towards the $165.00 level.
Looking at the 2-hours chart, the price traded as low as $167.25 and later started an upside correction. It recovered nicely and broke the $175.00 and $200.00 resistance levels. There was also a close above the $200.00 barrier and the 25 simple moving average (2-hours).
During the rise, buyers cleared a key declining channel with resistance at $181.00 on the same chart to open the doors for more gains. The price traded as high as $224.76 and it is currently consolidating gains above the $210.00 level.
It corrected lower and broke the 23.6% Fib retracement level of the recent leg from the $167.25 low to $224.76 high. However, the decline found support near the $206.00 level and the 25 simple moving average (2-hours).
There is also a connecting bullish trend line in place with support at $210.00 on the same chart. If the price fails to stay above the trend line, $206.00, and the 25 SMA, there could be more downsides.
The next major support is near the $196.00 level and the 50% Fib retracement level of the recent leg from the $167.25 low to $224.76 high. Below this, the price could resume its decline back towards the $165.00 level.
On the upside, Ethereum price is facing many hurdles near the $225.00, $230.00 and $240.00 levels. Above this last, the significant hurdle is at $260.00. Sellers will most likely try to defend these levels in the coming days.
The market data is provided by TradingView, Coinbase.