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Ethereum Defies Gravity But Here’s Why It Must Break $250 For Fresh Rally

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.

Ethereum Price

Ethereum Price

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.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently well above the 50 level.

Major Support Level – $240

Major Resistance Level – $250

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Ethereum Defies Gravity But Here’s Why It Must Break $250 For Fresh Rally was last modified: June 8th, 2020 by Aayush Jindal

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