Ethereum price is trading above the $128 and $130 support levels against the US Dollar.

ETH price is likely to start another rally above the $135 resistance area.

There was a break above a major bearish trend line with resistance near $129 on the 4-hours chart (data feed from Coinbase).

The price remains well supported on the downside near the $128 area.

Ethereum price is trading above key supports against the US Dollar. ETH/USD is likely to start a new upward move above the $135 and $140 resistance levels.

Ethereum Price Analysis

After forming a base near the $122 level, Ethereum price started a fresh increase against the US Dollar. ETH price surged above the $130 resistance and the 55 simple moving average (4-hours).

Moreover, there was a break above a major bearish trend line with resistance near $129 on the 4-hours chart. The pair even climbed above the $135 resistance and tested the $138 level.

Recently, Ethereum price started a downside correction from the $138 high. It broke the $134 support area. Besides, there was a break below the 23.6% Fib retracement level of the upward move from the $122 low to $138 high.

However, the price is finding strong bids near the $130 level and the 55 simple moving average (4-hours). Additionally, the 50% Fib retracement level of the upward move from the $122 low to $138 high is providing support.

If there is a downside break below the $130 support and the 55 SMA, Ethereum price could extend its decline. The next major support might be $125, where the bulls are likely to take a stand. It is close to the 76.4% Fib retracement level of the upward move from the $122 low to $138 high.

Any further losses may perhaps push the price towards the $122 support. On the upside, an initial hurdle for the bulls is near the $134 and $135 levels.

Therefore, a successful break above $135 might start another rally. The next major hurdle is near the $140 level, followed by $142. If the price continues to climb higher, it will most likely surpass the $145 resistance area.

Looking at the chart, Ethereum price is trading above key supports near the $130 and $128. As long as there is no close below the $128 level, there are chances of a fresh rally above the $134 and $135 resistance levels.

Technical indicators

4 hours MACD – The MACD for ETH/USD is slowly moving into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently above the 50 level.

Key Support Levels – $130, followed by the $128 zone.

Key Resistance Levels – $135 and $140.