Ethereum is currently consolidating above the $212 support area against the US Dollar. ETH price must climb above $228 and $238 to start a strong recovery in the near term.
- Ethereum is showing a few positive signs above the $212 level against the US Dollar.
- The price is likely to retest $228, which is the first major hurdle for the bulls.
- There is a key bearish trend line forming with resistance near $228 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also consolidating above the $8,500 support area.
Ethereum Price Facing Hurdles
In the past few sessions, Ethereum mostly traded in a range below the $228 and $230 levels against the US Dollar. ETH price seems to be consolidating in a contracting range, with resistance near the 100 hourly simple moving average and support near $212.
The recent low was $212 and the price is currently moving higher. It is testing the 50% Fib retracement level of the downside reaction from the $228 high to $212 low. On the upside, there are many key hurdles waiting near the $225 and $228 levels.
An initial resistance is near the $222 level. It represents the 61.8% Fib retracement level of the downside reaction from the $228 high to $212 low. The first major hurdle for the bulls is near the $228 level.
More importantly, there is a key bearish trend line forming with resistance near $228 on the hourly chart of ETH/USD. Therefore, Ethereum could struggle to gain bullish momentum above the $225 and $228 levels.
The next major resistance is near the $238 level (the breakout zone). A successful close above the $238 level could open the doors for a larger upward move in the near term. The next stop for the bulls may perhaps be $255 or even $260.
Downside Break?
If Ethereum fails to recover above the $225 and $228 resistance levels, it might start another decline. On the downside, an initial support is near the $212 level.
If there is a downside break below the $212 level, there is a risk of more losses below the $208 support area. The next major supports are seen near the key $200 handle.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is rising and it is currently above the 50 level.
Major Support Level – $212
Major Resistance Level – $228
