- Ethereum price started a downside correction from the $249 swing high against the US Dollar.
- ETH price is currently consolidating above the $236 support and near the 55 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $244 on the 4-hours chart (data feed from Coinbase).
- The pair could either climb again towards $250 or it might dive below the $236 support.
Ethereum price is struggling to stay above the $236 support against the US Dollar. ETH/USD may perhaps decline heavily if there is a clear break below $236 and $235.
Ethereum Price Analysis
After a steady rise, Ethereum price faced hurdles near the $249 and $250 levels against the US Dollar. ETH price traded as high as $249 and started a downside correction.
There was a break below the $245 and $242 support levels, but the price managed to stay above the 55 simple moving average (4-hours). It declined below the 23.6% Fib retracement level of the upward move from the $223 low to $249 high.
However, the $236 support zone is currently acting as a strong buy zone. The 50% Fib retracement level of the upward move from the $223 low to $249 high is also providing support.
The price is currently consolidating above the $236 support and near the 55 simple moving average (4-hours). More importantly, there is a key contracting triangle forming with resistance near $244 on the 4-hours chart.
If the price breaks the triangle support at $236, there is a risk of a sharp decline in the coming sessions. The next major support is near the $231 level, below which the bears are likely to aim a test of the $224 support zone.
Conversely, the price might bounce back from the $236 support. An initial resistance is near the $242 level. The first major resistance is near the triangle upper trend line and $245, above which the bulls are likely to aim a clear break above the $249-$250 resistance zone.
Looking at the chart, Ethereum price is clearly trading near a crucial support zone at $236. Therefore, it could either climb again towards the $250 barrier or it might dive below the $236 support.
Technical indicators
4 hours MACD – The MACD for ETH/USD is currently losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is just below the 50 level.
Key Support Levels – $236, followed by the $231 zone.
Key Resistance Levels – $245 and $250.