Ethereum is up around 2% and it broke the $232 resistance against the US Dollar. ETH has likely moved into a positive zone and it could continue to rise towards $240 or even $250.
- Ethereum is slowly gaining bullish momentum above the $232 resistance
- The price tested the $235 resistance and trading well above the 100 hourly simple moving average.
- 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 could correct a few points, but it is likely to resume its upside towards $240 or $250.
Ethereum Price Turns Green
After forming a strong support base above $225, Ethereum price started a fresh increase resistance against the US Dollar. ETH spiked above the $230 resistance from the $222 swing low to move into a positive zone.
The bulls gained strength above the $232 resistance and the price settled well above 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.
Ether tested the $235 resistance and it is currently consolidating gains. An initial support is near the $233.50 level or the 23.6% Fib retracement level of the recent surge from the $227 low to $235 high.
Ethereum price tests $235. Source: TradingView.com
The main support is now near the $232 level. It is close to the recent breakout zone and coincides with the 50% Fib retracement level of the recent surge from the $227 low to $235 high. On the upside, the $235 level is an immediate resistance level.
The current price action suggests that ether could rise further above $235. The next key resistance is near the $240 level, above which the price is likely to grind higher towards the $250 resistance zone in the near term.
Dips Supported in ETH
The $232 level is likely to act as a strong support for Ethereum, followed by $230. If the bulls fail to defend the $230 level, there is a risk of a sharp decline.
The next key support is near the $225 level, below which the price could continue to decline towards the $218 and $215 levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining traction in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level, with bullish signs.
Major Support Level – $230
Major Resistance Level – $235
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
