Yesterday, we discussed the chances of an upside break in Ethereum above the $160 level. Indeed, the ETH price did surge above the $148 and $150 resistance levels, paving way for a sharp rise.

As a result, the bulls took control and the price surged more than 15% over the past 24 hours. It also broke the $160 and $165 resistance levels. additionally, there was a close above the $160 level and the 100 hourly simple moving average.

A high was formed close to the $171 level and the price seems to be showing signs of a downside correction. It is already below the 23.6% Fib retracement level of the recent upside move from the $153 low to $171 high.

The first major support on the downside is close to the $162 level. Besides, the 50% Fib retracement level of the recent upside move, from the $153 low to $171 high, is also near the $162 level.

Notably, there is this formation of a key bullish trend line, with support near $162, on the ETH/USD hourly chart. Therefore, dips in Ethereum remains well supported close to the $162 and $160 levels.

There could be a downward correction towards $160 in the short term. However, the current uptrend may not be over yet. After the downside correction, it is likely the price could bounce back above $165 and $170.

The main resistance is close to the $170-$172 area. A clear break above the $172 level might pave way for more upsides towards the $180 support and resistance area. Especially if bitcoin rallies above the $9,000 level.

Technical indicators also suggest that the hourly MACD for ETH/USD is showing signs of a downside correction in the bullish zone. Its hourly RSI is currently correcting lower from the overbought zone. Major support level is at $162, whereas major resistance level is also at $172.

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