Ethereum formed a strong support base above the $224 level against the US Dollar. ETH is up over 3% and it broke the key $230 and $232 resistance levels.
- Ethereum is gaining bullish momentum above the $230 pivot and the 100 hourly simple moving average.
- The price is up more than 3% and it even tested the $235 resistance level.
- There was a break above a major bearish trend line with resistance near $230 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is showing positive signs and it seems like it could continue to rise towards $240 and $250.
Ethereum Price is Surging
In the past few days, Ethereum price formed a strong support base above $224 against the US Dollar. ETH price started a fresh increase and surpassed a couple of important hurdlers near $228 and $230.
The bulls gained strength, resulting in a steady rise above the $230 resistance the 100 hourly simple moving average. More importantly, there was a break above a major bearish trend line with resistance near $230 on the hourly chart of ETH/USD.
The pair even climbed above the $232 resistance and tested the $235 region. It is currently correcting lower and trading near the 23.6% Fib retracement level of the recent upward move from the $223 swing low to $235 high.
Ethereum price rallies 3%. Source: TradingView.com
On the downside, the first major support is near the $230 level (the recent breakout zone) and the trend line. It is close to the 50% Fib retracement level of the recent upward move from the $223 swing low to $235 high.
Once the current correction wave is complete, there are chances of another increase above the $235 resistance zone. In the mentioned case, ether price might continue to rise towards the $245 and $250 resistance levels in the coming sessions.
Another Failure in ETH?
If Ethereum fails to remain stable above the $230 support, there is a risk of a false upside break. A bearish close below the $230 support might spark a fresh decline.
The next major support is near the $224 level, below which the bears are likely to eye a sustained downward move.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well near the overbought zone.
Major Support Level – $230
Major Resistance Level – $235
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