This past week, we saw a major downside correction below the $170 support in Ethereum price against the US Dollar. The ETH/USD pair declined below the $165 support and tested the next key support at $160. Buyers appeared and protected further losses below $160. A support base was formed and recently the price recovered above the $165 resistance. There was a break above the 23.6% Fib retracement level of the last decline from the $185 high to $160 low.
More importantly, there was a break above a contracting triangle with resistance at $164 on the hourly chart of ETH/USD. The pair also settled above the $165 resistance and the 100 hourly simple moving average. The price tested the $170 level and it is currently placed nicely above the $165 level. An immediate resistance is near the $172 level. It represents the 50% Fib retracement level of the last decline from the $185 high to $160 low. If there are further gains, the price could test the $174 resistance area (the previous support).
The current price action is positive and if there is a minor decline, the price could test the $165 support. The 100 hourly SMA and the $165 support area likely to act as a strong buy zone. Below $165, the price could revisit the $160 swing low. On the upside, a clear break above the $174 level is must for a push towards $182 and $185.