Ethereum traded close to the $240 support area and recently recovered against the US Dollar. ETH price is now trading above $255 and it is likely to continue higher towards $270 and $275.
- Ethereum is slowly recovering above the $255 and $260 levels against the US Dollar.
- The price is facing a couple of key hurdles near the $265 and $270 levels.
- There was a break above a short term declining channel with resistance near $256 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is currently consolidating above the key $9,500 support area.
Ethereum Price Could Recover Further
Yesterday, we discussed the chances of more downsides towards the $240 level in Ethereum against the US Dollar. ETH price did move down below $250 and tested the $245 support area.
A swing low is formed near $244 and the price is currently recovering higher. It surpassed the 23.6% Fib retracement level of the recent decline from the $286 high to $244 low.
During the rise, there was a break above a short term declining channel with resistance near $256 on the hourly chart of ETH/USD. Ethereum is now trading above the $255 level, but it is facing a couple of hurdles near the $262 and $265 levels.
The first key resistance is near the $265 level. It coincides with the 50% Fib retracement level of the recent decline from the $286 high to $244 low. Moreover, the 100 hourly simple moving average is also near the $265 level to act as a hurdle.
Therefore, an upside break above the $265 level and the 100 hourly simple moving average might open the doors for a decent upward move in the near term. In the mentioned case, the price is likely to recover towards the $270 and $275 levels.
Downsides Supported
If Ethereum price fails to continue above the $265 resistance and the 100 hourly simple moving average, it could decline once again. An initial support is near the $255 level.
The main support on the downside is near the $245 and $240 levels. If the bulls fail to defend the $240 support area, there is a risk of a larger decline towards the $210 level in the near term. An intermediate support is near the $232 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is currently moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level, with positive signs.
Major Support Level – $245
Major Resistance Level – $265
