- Ethereum price is still larges correlated with Bitcoin price.
- Exhaustion $70.00 is bound to lead to a reversal that could test the support congestion zone at $160.
ETH/USD is trading in the Bollinger Band 1-hour upper following a slight recovery from the low posted on May 2 at $165.68. On April 26, the largest altcoin plunged and explored the levels marginally below $150 amid increased volatility in the cryptocurrency market. Ethereum price is still larges correlated with Bitcoin price as the largest asset dropped from highs above $5,400 to its main support at $4,950.
ETH/USD 1-hour chart
Ethereum is back in line after resuming from Thursday (April 26) last week’s support at $148.04 (Fib levels swing low). Trading above the 23.6% Fib level between the previous swing high of 178.49 and a swing low of $148.04 allowed the price to rise above $160 and $165 resistance levels. Unfortunately, the momentum failed to make headway above the Bollinger Band upper limit leading to yet another correction below the 23.6% Fib level.
Since Ethereum commenced the trading in April very bullish the bulls pulled the price up to close the month in the positive. A break occurred above the 200 Simple Moving Average (SMA) as well as the 61.7% Fib level at $166.83. Ethereum traded above $70.00 critical level, formed a high at $173.22 before retracing back under $170.
In the meantime, the price is retesting the key resistance at $70.00. It is vital that bulls recover support above this hurdle, however, exhaustion is bound to lead to a reversal that could test the support congestion zone at $160; a move that could paralyze the bulls entirely.
It also essential that the buyers take advantage of the intact technical levels with the RSI staying above 40.00. The price is above the 200 SMA 1-hour and immediately supported at $168.00.
Ethereum Key technical levels
RSI 1-hour: Moving higher at 59.72 (bulls are in control).
200 SMA 1-hour: $164.00 (will function a support).
Support 1: $168.00
Support 3: $148.04
Resistance 1: $70.00
Resistance 2: $172.00
Resistance 3: $178.49