ETH price surged higher and broke the key $185 resistance against the US Dollar.

The price is currently correcting lower after setting a new monthly high near the $196 level.

There is a short term breakout pattern forming with support near $191 on the hourly chart of ETH/USD (data feed via Kraken).

The pair could correct lower towards $190 or even $185 before a fresh increase in the near term.

Ethereum price is showing a lot of positive signs versus the US Dollar and bitcoin. ETH price is now trading nicely above $185 and it could soon test $200.

Ethereum Price Analysis

After a minor downside correction, Ethereum started a fresh increase from the $175 support against the US Dollar. ETH price surged above the $180 and $185 resistance levels. Moreover, there was a close above the $185 resistance and the 100 hourly simple moving average. The upward move was such that the price even surpassed the $190 level and traded to a new monthly high near $196.

At the moment, the price is consolidating gains below the $195 level. It is trading near the 23.6% Fib retracement level of the recent rally from the $181 low to $196 high. Moreover, there is a short term breakout pattern forming with support near $191 on the hourly chart of ETH/USD. If there is a downside break below the $191 and $190 levels, the price could extend its correction.

The next key support is near the $188 level. It coincides with the 50% Fib retracement level of the recent rally from the $181 low to $196 high. If the price fails to stay above $188, it could test the $185 support area (the previous resistance area). Additionally, yesterday’s highlighted bullish trend line with current support near the $186 level is intact and it is likely to provide support.

On the upside, an immediate resistance is near the $195 level. A convincing break above the $195 level may perhaps push the price towards the next important resistance near $200, above which the price could even test $205.

Looking at the chart, Ethereum price is clearly trading in an uptrend above the $185 support area. In the short term, there could be a downside correction towards $190 or $185. Overall, the price remains well supported and it is likely to continue higher above the $195 resistance. The next stop for the bulls might be $200 or $205.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently reducing its bullish slope.

Hourly RSI – The RSI for ETH/USD is currently well above the 60 level, with a lot of positive signs.

Major Support Level – $190

Major Resistance Level – $195