Analysis

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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Analysis – NewsBTC

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