Analysis

Ethereum Smashes Key Resistance: Technicals Indicate Fresh Rally To $288

Ethereum remained well bid above the $ 240 support area against the US Dollar. ETH price started a fresh increase and it could soon revisit the $ 288-$ 289 resistance zone.

  • Ethereum is recovering losses and it recently climbed above the $ 265 resistance against the US Dollar.
  • The price is gaining pace and it could rise further above $ 270 and $ 275.
  • Yesterday’s highlighted key bearish trend line was breached with resistance near $ 262 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is slowly recovering and it could test the $ 9,800 and $ 10,000 resistance levels.

Ethereum Price Rising Again

Recently, we saw a strong downside correction in Ethereum below the $ 260 support against the US Dollar. ETH price even declined below the $ 250 support and the 100 hourly simple moving average.

Finally, it traded close to the $ 235 support area and a swing low was formed near $ 236. A support base is formed above $ 240 and the price is currently rising. It broke a few key hurdles near the $ 250 and $ 255 levels.

More importantly, yesterday’s highlighted key bearish trend line was breached with resistance near $ 262 on the hourly chart of ETH/USD. The pair gained traction above the 50% Fib retracement level of the downside correction from the $ 289 high to $ 236 low.

Ethereum Price

Ethereum Price

Additionally, the price settled above the $ 260 level and the 100 hourly simple moving average. Ethereum is now consolidating near the 61.8% Fib retracement level of the downside correction from the $ 289 high to $ 236 low.

It seems like the bulls are preparing for a push above the $ 272 and $ 275 resistance levels. In the mentioned case, the price is likely to rise strongly towards the $ 280 and $ 285 levels.

The main hurdle on the upside is near the $ 288-$ 289 area, above which there are chances of a strong rise towards the $ 300 and $ 305 levels in the near term.

Dips Remain Supported

If the price fails to continue above the $ 275 resistance, it could correct a few points. An initial support is near the $ 264 level and the 100 hourly SMA.

Therefore, if Ethereum fails to stay above the 100 hourly SMA, the bulls are likely to struggle to protect the $ 260 support. In the mentioned case, the price may perhaps correct towards the $ 255 support area.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now back in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently rising and it is well above the 50 level.

Major Support Level – $ 262

Major Resistance Level – $ 275

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Analysis – NewsBTC

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