- Ethereum price declined to a new monthly low below the $230 level against the US Dollar.
- ETH price tested the $225 support area and it is currently correcting higher above $240.
- There was a break above a crucial bearish trend line with resistance near $240 on the 4-hours chart (data feed from Coinbase).
- The price must gain pace above $250 and the 55 SMA (4-hours) to start a strong recovery in the near term.
Ethereum price is currently correcting higher above $245 after a major decline against the US Dollar. ETH could continue to rise if the bulls regain strength above the $250 level.
Ethereum Price Analysis
In the past few days, there was a strong decline in Ethereum price below the $250 level against the US Dollar. The ETH/USD pair even broke the $240 level and the 55 simple moving average (4-hours). Finally, there was a break below the $232 support area. The pair traded to a new monthly low near the $225 support and recently started an upside correction. There was a break above the $235 resistance and the 50% Fib retracement level of the recent drop from the $254 high to $226 swing low.
Moreover, there was a break above a crucial bearish trend line with resistance near $240 on the 4-hours chart. The price even broke the 61.8% Fib retracement level of the recent drop from the $254 high to $226 swing low. However, the upward move was capped by the $250 resistance area. The price even faced a strong resistance near the 55 simple moving average (4-hours). Moreover, the 76.4% Fib retracement level of the recent drop from the $254 high to $226 swing low is acting as a solid barrier.
If there is an upside break above $250 and the 55 SMA, there could be a strong upward move. The next key resistance is near the $260 level, where sellers are likely to appear. On the downside, an initial support is at $240, below which the price might resume its decline.
Looking at the chart, Ethereum price is facing an uphill task near the $250 level and the 55 SMA. If the bulls gain pace above $250, there are chances of a fresh increase. The next key resistances are $255, $260 and $270. On the downside, the main support is at $240, below which the price might revisit the $225 area.
Technical indicators
4 hours MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD moved above the 50 level.
Key Support Levels – $240, followed by the $225 zone.
Key Resistance Levels – $250 and $260.