Ethereum price performed really well and rallied above the $115.00 and $120.00 resistance. ETH/USD even broke the $125.00 resistance and traded as high as $128.17 before correcting lower.
- Ethereum price is placed nicely above the $120.00 and $118.00 support levels.
- ETH/USD is testing a short term bullish trend line with support at $122.00 on the 30-minute chart.
- The price is likely to correct lower before a fresh upward move above $125.00.
Ethereum Price Analysis
The past few days were very bullish as Ethereum price climbed above the $112.00, $115.00 and $120.00 resistance levels. ETH even surged above the $125.00 level and posted a new monthly high at $128.17.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair started a downside correction after a sharp rally towards the $130.00 resistance. It corrected below the $125.00 level and the 23.6% Fib retracement level of the recent wave from the $118.00 low to $128.17 high.
However, there is a strong support formed near the $122.00 level (the previous resistance). The 25 simple moving average (30-min) is acting as a support near the $122.50 level.
More importantly, there is a short term bullish trend line in place with support at $122.00 on the same chart. Finally, the 61.8% Fib retracement level of the recent wave from the $118.00 low to $128.17 high is near the $122.00 area.
Therefore, the $122.00 level might act as a strong support. If the price extends the current decline, the next stop for sellers could be near the $118.00 swing low. Any further losses could lead the price towards the 1.236 Fib extension level of the recent wave from the $118.00 low to $128.17 high at $115.45.
To sum up, the current price action is positive above the $118.00 and $120.00 support levels. There could be an extended dip in Ethereum price, but as long as the price is above $115.00, it could bounce back. On the upside, the main resistances area near $125.00, $128.00 and $130.00.
The market data is provided by TradingView, Bitfinex.