- Ethereum price is recovering nicely from the $218 support zone against the US Dollar.
- ETH price must break the $235 resistance zone to continue higher in the near term.
- There is a key bearish trend line forming with resistance near $235 on the 4-hours chart (data feed from Coinbase).
- The pair could either rally above the $235 resistance or it might restart its decline below $225.
Ethereum price is attempting a key upside break above $235 and $240 against the US Dollar. ETH/USD is likely to revisit $250 if it clears the $235 resistance zone.
Ethereum Price Analysis
After forming a top near the $250 level, Ethereum price started a downside correction against the US Dollar. ETH price broke the $245 and $240 support levels. Moreover, there was a break below the $225 support and the 55 simple moving average (4-hours).
Finally, the price broke the $220 level, but it found a strong support near the $218 level. A low is formed near the $218 level and the price recently started a strong increase.
There was a sharp increase above the $220 and $225 resistance levels. It broke the 23.6% Fib retracement level of the downward move from the $250 high to $218 low. Ethereum is facing a major hurdle near the $235 resistance zone.
The 50% Fib retracement level of the downward move from the $250 high to $218 low is also near the $235 level. There is also a key bearish trend line forming with resistance near $235 on the 4-hours chart.
If there is an upside break above the $235 resistance, the price could continue to rise towards the $240 and $245 levels. Any further gains could accelerate the move towards the $250 resistance level.
Conversely, the price could start a fresh decline from the $235 resistance zone. An initial support is near the $230 level. The main support is near the $225 level, below which there is a risk of more losses towards the $218 and $215 levels.
Looking at the chart, Ethereum price is gaining momentum above the $230 level. Having said that, the price must clear the $235 resistance to increase the chances of a sharp rise towards the $250 barrier.
Technical indicators
4 hours MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is now close to the 50 level.
Key Support Levels – $225, followed by the $218 zone.
Key Resistance Levels – $235 and $250.
