Ethereum Watch

Ethereum is up more than 15% and it broke the key $150 and $160 hurdles versus the US Dollar, while bitcoin jumped above $8,800. However, the current price action suggests ETH could correct towards $160 before it continues higher.Ether price rallied significantly after it broke the $148 resistance area against the US Dollar.The price even surged above the $160 level and traded as high as $171.There is a key bullish trend line forming with support near $162 on the hourly chart of ETH/USD (data feed via Kraken).The pair is likely to correct lower towards $162 or $160 before it starts a fresh increase.Ethereum Rally Might Pause In Short TermYesterday, we discussed the chances of an upside break in Ethereum above the $148 resistance against the US Dollar. ETH price did climb above the $148 and $150 resistance levels, opening the doors for a sharp rise.As a result, the bulls tool control and the price rallied more than 15%. It broke the $160 and $165 resistance levels. Moreover, there was a close above the $160 level and the 100 hourly simple moving average.A high was formed near the $171 level and Ethereum seems to be showing signs of a downside correction. It is already below the 23.6% Fib retracement level of the recent rally from the $153 low to $171 high.The first key support on the downside is near the $162 level. Besides, the 50% Fib retracement level of the recent rally from the $153 low to $171 high is also near the $162 level.Ethereum PriceMore importantly, there is a key bullish trend line forming with support near $162 on the hourly chart of ETH/USD. Therefore, dips in Ethereum remains well supported near the $162 and $160 levels.More Upsides In ETH After Correction?There could be a downside correction towards $160 in the short term, but it does not mean the current uptrend is over. After the price completes a downside correction, it is likely to bounce back above $165 and $170.The main resistance is near the $170-$172 zone. A clear break above the $172 zone might set the pace for more upsides towards the $180 pivot and resistance area, especially if bitcoin surges above the $9,000 level.Technical IndicatorsHourly MACD – The MACD for ETH/USD is showing signs of a downside correction in the bullish zone.Hourly RSI – The RSI for ETH/USD is currently correcting lower from the overbought zone.Major Support Level – $162Major Resistance Level – $172