Ethereum price corrected lower recently and tested the $120.00 support area. ETH/USD bounced back and it seems like the pair could continue to rise towards the $128.00 level.
- Ethereum price found a strong buying interest near the $120.00 support level.
- ETH/USD broke a key bearish trend line with resistance at $122.30 on the 30-minute chart.
- The price is trading with a bullish angle and it could rise towards $126.00 or $128.00.
Ethereum Price Analysis
After a solid upward move, Ethereum price faced sellers near the $128.00 level. As a result, ETH corrected lower below $125.00 and tested the key $120.00 support, where buyers emerged.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair declined below the $122.00 level and the 25 simple moving average (30-min). However, the $120.00 level acted as a strong support and prevented further losses.
A low was formed at $119.24 and the price started a fresh upward move. It climbed above the $122.00 level and the 23.6% Fib retracement level of the recent downside correction from the $128.16 high to $119.24 low.
Besides, the price cleared the $122.50 level and the 25 simple moving average (30-min). Finally, there was a break above a key bearish trend line with resistance at $122.30 on the same chart.
An immediate resistance is near $123.70 and the 50% Fib retracement level of the recent downside correction from the $128.16 high to $119.24 low. If buyers gain strength above the $123.70 and $124.00 levels, there are chances of further upsides towards the $126.00 or $128.00 level.
On the other hand, if there is another bearish reaction, the price could test the $121.30 support. The main support is at $120.00, below which there is a risk of an extended drop to $118.00.
Overall, Ethereum price seems to be gaining bullish momentum above $122.00, but ETH must break the $124.00 resistance to continue higher. Besides, bitcoin price could gain strength above $3,700, which may help altcoins in the near term.
The market data is provided by TradingView, Bitfinex.