- Ethereum price is holding the key support near the $90.50 level.
- ETH/USD is finding bids near an ascending channel with support at $90.50 on the 30-minute chart.
- The price may correct higher towards $96.00 if there is no downside break below $90.50.
Ethereum Price Analysis
After trading as high as $102.50, Ethereum price started a major downside correction. It declined below the $100.00 and $95.00 support levels to enter a short term bearish zone.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair even broke the $92.50 support and the 25 simple moving average (30-min). However, the decline was protected near the $90.00-90.50 support zone.
More importantly, the price is finding bids near an ascending channel with support at $90.50 on the same chart. The price is currently recovering and it recently moved above the $92.00 level and the 25 simple moving average (30-min).
Buyers pushed the price above a connecting bearish trend line at $92.00, opening the doors for a decent recovery. The first hurdle for buyers is near the $96.00 level and the 50% Fib retracement level of the recent decline from the $102.50 high to $90.30 low.
If there is a break above the $96.00 and $96.40 resistance levels, the price may perhaps climb towards the $100.00 resistance and the 76.4% Fib retracement level of the recent decline from the $102.50 high to $90.30 low.
On the other hand, if buyers fail to defend the channel support and $90.00, there could be a sharp decline towards the $85.60 level. However, the main support is near the $83.00-83.50 zone.
Overall, Ethereum is trading above a crucial support at $90.50. As long as buyers continue to protect losses below $90.50, there are chances of a decent recovery towards $96.00 or even $100.00 in ETH in the near term. The 30-minute RSI moved sharply above 50, which is a positive sign.
The market data is provided by TradingView, Bitfinex.
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