- Ethereum price surged higher towards the $280 level and recently corrected lower against the US Dollar.
- ETH declined below the $250 support level and tested the next important support near $220-225.
- There is a major bullish trend line in place with support at $240 on the 4-hours chart (data feed from Coinbase).
- The price is likely to break the $260 resistance level and start a fresh increase in the near term.
Ethereum price is following a solid upward above the $220 support against the US Dollar. ETH is currently consolidating, but it is likely to climb above $260, $270 and $275.
Ethereum Price Analysis
This past week, Ethereum price gained a strong bullish momentum above the $220 and $250 resistances against the US Dollar. The ETH/USD pair even surged above the $260 level and settled above the 55 simple moving average (4-hours). The pair traded towards the $280 level and formed a new 2019 high near the $281.50 level. Recently, it started a downside correction and traded below the $260 and $250 support levels. The price even broke the $230 level and traded close to the $220 support.
A swing low was formed near $223 and the price rebounded above $240. More importantly, it remained well above the $220 level and the 55 simple moving average (4-hours). It recently climbed above the 50% Fib retracement level of the downward move from the $281 high to $223 swing low. However, the price seems to be facing a strong resistance near the $260 and $262 levels. The 61.8% Fib retracement level of the downward move from the $281 high to $223 swing low is also acting as a hurdle.
On the downside, there is a major bullish trend line in place with support at $240 on the 4-hours chart. The pair must stay above the $240 support to climb higher in the near term. On the upside, the price must break the $260 resistance to start a fresh increase. The next key resistance is at $272, above which the price may even break the $281 high and trade to a new 2019 high.
Looking at the chart, Ethereum price is trading nicely above the $240 support level. If it fails to move above $260, there is a risk of a downside break below $240. The next immediate support is near the $230 level and the 55 simple moving average (4-hours). The main support is near the $223 and $220 levels.
Technical indicators
4 hours MACD – The MACD for ETH/USD is currently losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is still above the 50 level.
Key Support Levels – $240, followed by the $223 zone.
Key Resistance Levels – $260 and $275.
