Ethereum Could Narrowly Avoid Another Decline If It Closes Above $230
Ethereum is slowly recovering and trading above the $225 level against the US Dollar. ETH is likely to rise sharply if it clears the $228 and $230 resistance levels.
- Ethereum is showing positive signs above the $224 and $225 support levels.
- The price is still struggling to clear the $228 and $230 resistance levels.
- There is a crucial ascending channel forming with support near $224 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could either rally above $230 or it might decline below the channel support to start another decline.
Ethereum Price is Rising Steadily
In the past few sessions, Ethereum price started a steady rise above the $220 level against the US Dollar. ETH price managed to recover above the $225 resistance level and the 100 hourly simple moving average.
However, the price failed to gain momentum above the $228 and $230 resistance levels. A high is formed near $230 and ether is currently correcting lower. It traded below the $228 level and the 100 hourly SMA.
An immediate support could be $225 since it is close to the 50% Fib retracement level of the recent wave from the $221 low to $230 high. There is also a crucial ascending channel forming with support near $224 on the hourly chart of ETH/USD.
Ethereum price trades below $230. Source: TradingView.com
The channel support is close to the 61.8% Fib retracement level of the recent wave from the $221 low to $230 high. On the upside, the price is clearly struggling to clear the $228 and $230 resistance levels.
If ether price settles above the $230 resistance level, there are high chances of a sustained upward move. The next major resistance is near the $235 level, above which it could revisit the $250 resistance.
Downside Break in ETH?
If Ethereum fails to clear the $228 and $230 resistance levels, it is likely to start a fresh drop. The channel support is near the $224 level, below which the price might gain traction below $222.
A downside break below the $222 and $220 support levels may perhaps open the doors for another decline towards the $215 level. The next key support is near the $205 level.
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 above the 50 level, with a positive bias.
Major Support Level – $224
Major Resistance Level – $230
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Aayush Jindal, Khareem Sudlow
