Ethereum is gaining traction and it recently recovered above the $225 resistance against the US Dollar. ETH price could rally if there is a clear break above $238 and $240.
- Ethereum is slowly gaining momentum above the $220 and $225 levels against the US Dollar.
- The price must climb above the $238 and $240 levels to start a significant and steady rise.
- There was a break above a major bearish trend line with resistance near $225 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also recovering and it is now trading above the $8,800 level.
Ethereum Price Showing Positive Signs
In the past three sessions, Ethereum traded with a positive bias above the $220 resistance against the US Dollar. ETH price is up more than 4% and it broke the $225 resistance to move into a positive zone.
There was a proper close above the $225 level and the 100 hourly simple moving average. More importantly, there was a break above a major bearish trend line with resistance near $225 on the hourly chart of ETH/USD.
The pair remained well bid and it climbed above the $230 level. A new intraday high is formed near $235 and the price is currently correcting lower. There was a break below the $232 and $230 levels.
Besides, Ethereum traded below the 23.6% Fib retracement level of the recent upward move from the $212 low to $235 high. An initial support on the downside is near the $228 level and the 100 hourly simple moving average.
The next major support is near the $225 level (the recent breakout zone). The main support is now near the $223 level. It coincides with the 50% Fib retracement level of the recent upward move from the $212 low to $235 high.
Therefore, dips in Ethereum remain well supported near $225 and $223. On the upside, there are a few important resistances seen near $235, $238 and $240. A successful break and close above $240 is needed to start a significant upward move and a fresh rally.
Another Failure?
If Ethereum fails to continue higher above $238, it could decline below the $225 and $223 support levels. The next key support is seen near the $220 level.
Any further losses may perhaps lead the price back towards the $208 swing low in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with positive signs.
Major Support Level – $225
Major Resistance Level – $238
