Ethereum Rallies Towards $140, Still Facing Downtrend Resistances

Ethereum rallies towards the $140 and $145 resistance area, increasing by 15 per cent against the US dollar. The ethereum price is facing downtrend resistances again, but the good news is that it is gaining traction after surging past the $130 level. The bears are defending more gains above the $140 price level, and there is a connecting bullish trend that is creating the support close to the $126 on the hourly charts.

After trading in one range, the Ethereum price increased after surpassing the $125 resistance against the US dollar. The ETH price broke a fundamental level close to the $130 level and Ethereum rallies strongly as of then. The bulls gained momentum, and the price increased well above the $135 level. Also, there was a close above this same level and the 100 hourly simple moving averages. The price traded to a new high of $144 which is where the bears showed up.

It seems that the bullish support close to the $142 is acting as a barrier for the bulls while Ethereum is correcting lower than the $143 swing high. The ethereum price is testing the 23.6% fib retracement level from the recent rally of $110 flat, and on the downside, a lot of support levels can be seen forming close to the $130 price range. There is also another bullish trend line forming with close support to the $126 as we can see on the hourly charts of the ETH/USD pair.

The 50% Fib retracement level from the previous rally from the $110 low is also nearing the $126 level and acts as strong support along the 100 hourly SMA. Another downside correction close to the $130 level could pose a substantial buying interest in the near term.  On the upside, the Ethereum price could face a lot of hurdles, starting with the $142 and going up to $150. To move into the uptrend and start another rally, the price will have to settle above the $150 resistance level. If the ethereum price doesn’t manage to do this, it will slide back towards the $126 degrees in the upcoming sessions. The man support is now forming close to the $120 level. The ethereum price has seen its fair share of crashes over the past week as the coronavirus pandemic emerged.