Ethereum jumped back above $260 and $270 against the US Dollar. ETH price is now consolidating above $275 and it could soon surpass the $288 resistance area.
- Ethereum is back in a positive zone, with a strong bullish bias above $275 against the US Dollar.
- The price is likely to accelerate gains towards the $300 level in the near term.
- There is a short term contracting triangle forming with resistance near $284 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is up around 4% and it is now trading nicely above the $10,000 resistance area.
Ethereum Price Could Soon Test $300
Since the start of the month, we discussed the chances of Ethereum hitting the $300 level against the US Dollar. Recently, ETH price corrected sharply towards the $230 support and broke the 100 hourly simple moving average.
However, it remained well bid above $230 and started a strong rise. It is back above the $260 and $270 resistance levels. Moreover, it surpassed the $280 resistance and settled above the 100 hourly simple moving average.
It even spiked above $285, but failed to revisit the $288 resistance area. A swing high is formed near $286 and the price is currently consolidating gains. There was a break below the 23.6% Fib retracement level of the recent rise from the $259 low to $286 high.
More importantly, there is a short term contracting triangle forming with resistance near $284 on the hourly chart of ETH/USD. If Ethereum clears the triangle resistance, there are high chances of more gains above the $288 resistance area.
In the mentioned case, the price is likely to continue higher towards the $295 and $300 levels. Any further gains could lead the price towards the $308 level.
Dips Remain Attractive
If the price fails to continue above the $288 resistance, it may perhaps correct a few points. However, Ethereum is likely to remain well bid above the $275 and $270 levels.
An intermediate support is near the 50% Fib retracement level of the recent rise from the $259 low to $286 high. The main support on the downside is near the $266 level and the 100 hourly SMA, below which the bulls are likely to struggle 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 currently rising and it is well above the 60 level.
Major Support Level – $272
Major Resistance Level – $288
