Ethereum gained traction above the $ 245 resistance, but it struggled to clear the $ 250 resistance against the US Dollar. ETH price is likely to find support near $ 245 and it could rally again.
- Ethereum traded to a new intraday high after a spike above the $ 245 resistance.
- The price is currently retreating from the $ 250 resistance, but trading well above the 100 hourly simple moving average.
- There was a break above a key contracting triangle with resistance near $ 243 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to remain well bid above the $ 245 and $ 244 support levels.
Ethereum Price Showing Positive Signs
After trading in a range for many sessions, Ethereum price spiked above the $ 244 and $ 1245 resistance levels. ETH formed a strong support base above $ 240 and the 100 hourly simple moving average before starting the recent rise.
During the rise, there was a break above a key contracting triangle with resistance near $ 243 on the hourly chart of ETH/USD. The pair tested the $ 250 resistance zone, where the bulls lost momentum and sellers prevented more gains.
Ether price is currently correcting lower and trading below the $ 248 level. There was a spike below the 50% Fib retracement level of the recent rise from the $ 242 low to $ 250 high.
The previous key resistance near the $ 245 level is currently acting as a strong support. The 61.8% Fib retracement level of the recent rise from the $ 242 low to $ 250 high is also acting as a strong support.
On the upside, the $ 250 level seems to the next major hurdle for the bulls. A successful daily close above the $ 250 level is needed for more gains. The next key resistance could be near the $ 265 level.
False Break in ETH?
The $ 245 level is an initial support for Ethereum. The main support is now forming near the $ 244 level and the 100 hourly simple moving average.
If the price fails to stay above the 100 hourly simple moving average, there are high chances of a sharp decline below the $ 240 support. In the stated case, the price might dive towards $ 230 or even $ 225.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – $ 244
Major Resistance Level – $ 250
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