Yesterday, the ETH price made a short term downside correction from the $172 resistance against the USD. It traded below the $165 support level and even went further to break the $160 level.

However, the price remained well supported close to $158 and the 100 hourly simple moving average. A decent support base was formed close to the $158 level and the price is currently starting a fresh rally.

The 23.6% Fib retracement level of the decline from the $172 high to $158 low was broken. Moreover, a resistance near $165 on the ETH/USD hourly chart was formed.

The ETH price is now trading close to the $165 zone. Besides, the 50% Fib retracement level of the decline from the $172 high to $158 low is also near the $165 level.

Should there be a clear break above the $165 resistance, ETH is likely to rally towards the $170 and $172 levels. Any further gains could pave way for the price towards the $180 zone.

ETH could correct again if it struggles to clear the $165 resistance. An initial support is close to the $160 level. The key support on the downside is close to the $158 level and the 100 hourly simple moving average.

A sharp decline should be expected if the bears manage to push the price below the $158 support and the 100 hourly simple moving average.

In the above bearish scenario, the price is likely to test the $150 support area in the near term. The overall current price action is positive, suggesting more gains above the $165 and $170 levels.

Technical indicators also suggest that the hourly MACD for ETH/USD is slowly gaining momentum in the bullish zone. Its Hourly RSI (Relative Strength Index) is now back above the 50 level, with a bullish angle. Major support level is at $160, whereas major resistance Level is also at $170.

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