ETH/USD struggles to break $180 resistance

Fibo Quantum

  • Ethereum recovers from the recent lows although resistance at $180 is limiting movements.

  • ETH/USD technical levels are pointing toward growing bullish momentum in the near-term.

  • A trendline from the lows on Wednesday will continue to offer support.

Ethereum is gradually moving down. Moreover, it has recently broken the $180 support area. Before the lower correction, ETH had formed a short-term top near $183.

ETH/USD four-hour chart

The 50 Simple Moving Average on the four-hour chart is moving above SMA 100 indicating an uptrend momentum. The main support area is at $177 as indicated by SMA 100 while the second support is at $178 as shown by SMA 50.

The Relative Strength Index (RSI) is recovering towards the overbought. Traders must be on the lookout for signs of a reversal as Ethereum approaches overbought conditions in the near-term.  

The Moving Average Convergence Divergence signifies a growing bullish momentum especially after crossing into the positive territory. An improving bullish divergence suggests that buyers are gaining ground against the bears. As long as ETH/USD stays above the trendline, we are likely to see a continued bullish action above $180 and even extend the correction to the next hurdle at $190.