Ethereum started a fresh increase from the $235 zone against the US Dollar. ETH price is now trading nicely above $240, but it is still struggling to gain momentum above $245 and $250.
- Ethereum is trading well above the $240 support and the 100 hourly simple moving average.
- The price must surpass the $245 and $250 resistance levels to continue higher.
- There was a break above a key bearish trend line with resistance near $242 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could dip in the short term, but the $240 zone is likely to provide support.
Ethereum Price Showing Positive Signs
Ethereum price extended its decline below the $240 support level. ETH price traded close to the $235 level before the bulls took a stand. A low is formed near $234 and the price recently recovered sharply.
There was a break above the $240 resistance zone and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $242 on the hourly chart of ETH/USD.
However, ether price again struggled to gain strength above the $245 resistance. A high is formed near $246 and the price is currently correcting lower. It tested the 23.6% Fib retracement level of the recent wave from the $234 low to $246 high.
The first major support on the downside is near the $242 level and the 100 hourly simple moving average. The next key support is near the $240 level and the 50% Fib retracement level of the recent wave from the $234 low to $246 high.
On the upside, the bulls need to gain strength above the $245 and $250 resistance levels to start a strong increase. The next major barrier could be near the $260 and $262 levels.
Dips Supported in ETH
If Ethereum fails to continue higher above $245, it could react to the downside. The main support is near the $240 level and the 100 hourly simple moving average.
If the price settles below $240, there is a risk of another test of the $230 support. Any further losses could lead the price towards the $220 support zone.
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $240
Major Resistance Level – $250
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