Ethereum Takes a Bit Hit But Uptrend Intact Above This Support

Ethereum jumped to a new 2020 high at $ 278 before correcting lower against the US Dollar. ETH is now consolidating and it is likely to continue higher above $ 275.

  • Ethereum seems to be struggling to clear the $ 275 resistance area against the US Dollar.
  • The price is currently consolidating gains above the $ 260 support area.
  • There is a key contracting triangle forming with support near $ 259 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is currently correcting lower, but it remains supported above $ 10,000.

Ethereum Price Remains In Uptrend

Recently, there were a couple of swing moves in Ethereum above the $ 260 pivot area against the US Dollar. ETH surged to a new 2020 high at $ 278 and recently corrected lower.

It broke the $ 265 support level, but remained well above the 100 hourly simple moving average. The correction was such that the price spiked below the $ 260 support area before the bulls emerged near the $ 255 level.

A swing low was formed near $ 254 before Ethereum rallied above. The last swing high was $ 278 before the price corrected again to $ 262. It is currently consolidating losses above the $ 260 support area.

Moreover, there is a key contracting triangle forming with support near $ 259 on the hourly chart of ETH/USD. If there is a downside break below the triangle support, the price could retest the $ 255 support area.

Ethereum Price

Ethereum Price

The main uptrend support for Ethereum is near the $ 248 level and the 100 hourly simple moving average. If the price fails to stay above the $ 248 support area, there could be a larger downside correction. The next major support is seen near the $ 230 area.

Fresh Increase?

On the upside, an initial resistance is near the $ 270 level. It coincides with the 50% Fib retracement level of the recent decline from the $ 278 high to $ 262 low.

A convincing break above the $ 270 area is needed for more gains. An immediate hurdle could be the 61.8% Fib retracement level of the recent decline from the $ 278 high to $ 262 low.

However, Ethereum must gain momentum above the $ 275 resistance area to start a strong wave towards the $ 300 resistance area in the near term. If not, it could correct further towards the $ 248 support level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is back above the 50 level, with positive signs.

Major Support Level – $ 260

Major Resistance Level – $ 275

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Analysis – NewsBTC

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