Ethereum price made a surprise bullish move and broke the $125.00 resistance. ETH/USD is trading with a positive bias and it could extend gains above $135.00.
- Ethereum price climbed higher sharply and broke the $125.00 and $129.25 resistances.
- ETH/USD is currently following a bullish flag pattern with support at $129.00 on the 30-minute chart.
- The price might decline in the short term, but it could bounce back to $135.00 and $140.00.
Ethereum Price Analysis
Yesterday, we saw a dead cat bounce in Ethereum price above the $118.00 level. However, ETH buyers gained control above $120.00, resulting in a sharp rally above the $125.00 and $129.25 resistances.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair formed an intermediate low at $118.71 and started a solid bullish wave above the $120.00 level. It broke the $125.00 resistance level to start a decent recovery.
Buyers pushed the price above the $129.25 and $132.00 resistance levels. Finally, there was a break above the 1.236 Fib extension level of the last drop from the $128.10 high to $116.10 low.
The price traded to a new weekly high at $134.50 and later started a short term correction. It dipped below the $132.00 level, the 25 simple moving average (30-min), and the 23.6% Fib retracement level of the recent wave from the $118.71 low to $134.50.
At the outset, the price is following a bullish flag pattern with support at $129.00 on the same chart. In the short term, there could be a downside correction towards the $130.00 or $129.00 support levels, where buyers are likely to emerge.
Below the flag support, the price could test the $127.00 support and the 50% Fib retracement level of the recent wave from the $118.71 low to $134.50.
Overall, Ethereum price is clearly moved into a bullish zone above $125.00. Going forward, ETH could make another attempt to break the $135.00 resistance, above which the price will most likely test $140.00. On the downside, the key supports are $129.00 and $127.00.
The market data is provided by TradingView, Bitfinex.