Analysis

Ethereum Could Reverse Losses If It Closes Above One Key Level

Ethereum declined heavily after multiple rejections near $ 250 against the US Dollar. ETH price is now recovering, but it must settle above $ 240 to start a fresh increase.

  • ETH price is currently correcting higher from the $ 225 swing low against the US Dollar.
  • It is now trading above the $ 230 level and the 100 simple moving average (4-hours).
  • Earlier, there was a break below a key ascending channel with support at $ 244 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could also move back into a positive zone if it closes above the $ 240 resistance.

Ethereum Price is Facing Hurdles

This past week, Ethereum failed to settle above the $ 250 resistance level against the US Dollar. As a result, ETH price started a major decline below the $ 245 and $ 240 support levels.

The decline was initiated after there was a break below a key ascending channel with support at $ 244 on the 4-hours chart of ETH/USD. The pair even broke the $ 230 support and the 100 simple moving average (4-hours).

Ethereum Price
Ethereum Price

Ether price traded as low as $ 225 and recently started an upside correction. It broke the $ 230 and $ 232 resistance levels. However, the bulls are currently facing hurdles near the $ 238 level or the 50% Fib retracement level of the recent decline from the $ 250 high to $ 225 low.

It seems like there is a crucial hurdle forming near the $ 238 and $ 240 levels. The 61.8% Fib retracement level of the recent decline from the $ 250 high to $ 225 low is also near $ 241.

A successful break above the $ 240 resistance zone is likely to push the price into a positive zone. The next key resistance is near the $ 250 level, above which the price could surge towards the $ 265 level.

Fresh Decline in ETH?

On the downside, there is a decent support forming near the $ 234 level and the 100 simple moving average (4-hours). If Ethereum fails to stay above the $ 234 support, it could continue to move down below $ 230.

The main supports are near the $ 225 and $ 222 levels, below which ether is likely to accelerate lower towards the $ 205 and $ 200 support levels.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.

Major Support Level – $ 230

Major Resistance Level – $ 240

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Analysis – NewsBTC

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