Ethereum is making preparations for another rally

The crypto prices seem to be on their way of recovery after the last month’s market crash. Even so, some projects have seen bigger advances than others, and Ethereum looks like it is preparing for a new rally.

Ethereum’s recent performance shows signs of upward movement

The coin recently tested its resistance level at $175 yet again. It did not manage to break it, but instead, it saw a minor correction. But, it still managed to hold its own and not break the support zone between $165 and $170. Instead, its slight drop stopped at $168, meaning that the major support at $165 managed to hold.

The coin’s price still remains above the 100-hourly simple moving average, while its most recent high sits at $173.

At the time of writing, the coin sits at $171.15, after seeing a 1.19% growth in the last 24 hours. Its market cap currently sits at $18.9 billion, while the trading volume is at $14.8 billion.

While the strong support at $165 did manage to hold, it appears that the coin is forming yet another strong level at $170. Meanwhile, the major resistance is at $174 helps form a contracting triangle on the hourly chart against the USD.

What can the traders expect?

In the near future, Ethereum could climb above the mentioned triangle resistance. If this happens, this could be a sign of another rally that could take it above $175. This would be very significant, as that that has been one of the crucial levels in the past. After that, the next resistances lie at $180. If that one were to fall, ETH could see a larger upward move, and potentially test $195 and maybe even $200 levels.

However, there is also the alternative, where ETH could see a successful close below the triangle lower trend line. This one sits right at $170, and the coin still remains uncomfortably near it. If the worst comes to pass, it may yet see a bearish wave that would take it below $168.

After that, the next support would sit at $165, as mentioned before. However, if this one should fall as well, ETH can still get caught by the one at $162. This one should remain strong enough to catch it if it falls. But, in case of further losses, the next support that ETH will test is at $158.