- Ethereum price surged more than 20% above the $160.00 and $170.00 resistances.
- There is a strong bullish trend line formed with support at $164.50 on the 30-minute chart.
- ETH recently tested the $165.00 support area and it could now bounce back above $170.00.
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Ethereum Price Analysis
The recent rise in bitcoin price above the $5,000 resistance helped Ethereum in gaining traction above the key $155.00 and $160.00 resistance levels. ETH is up more than 20% and it broke the $170.00 resistance level.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair cleared the $150.00 resistance level and settled above the 25 simple moving average (30-min) to start a solid uptrend. Buyers were in full control, resulting in a break above the $160.00 and $170.00 resistance levels.
The price even spiked above the $175.00 level and traded to a new multi-month high at $177.66. Later, there was a sharp downside correction below the $175.00 and $170.00 levels.
During the recent slide, the price traded below the 23.6% Fib retracement level of the recent rally from the $149.23 low to $177.66 high. However, the price found a strong support near the $162.50 level.
Besides, the 50% Fib retracement level of the recent rally from the $149.23 low to $177.66 high acted as a support. More importantly, there is a strong bullish trend line formed with support at $164.50 on the same chart.
Therefore, Ether price is likely to bounce back above the $170.00 level as long as it is trading above the $162.50 and $165.00 support levels. On the upside, the main hurdles for buyers are near $172.00 and $175.00. Above these, the price is likely to break the recent high at $177.66 and trade past $185.00.
Overall, Ethereum is placed nicely in an uptrend and if there is a downside correction, buyers are likely to take a stand near the $162.50 or $160.00 support levels.
The market data is provided by TradingView, Bitfinex.