Ethereum Might Not Go Down Quietly: Risk of Bullish Break Grows Above $240
Ethereum is stable above the $230 and $225 support levels against the US Dollar. ETH price seems to be eyeing a major bullish break above $238 and $240.
- Ethereum is currently attempting an upside break above $234 and the 100 hourly simple moving average.
- The price is likely to remain well bid above the $230 and $225 support levels.
- There is a key bullish flag pattern forming with resistance near $234 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady rise if it clears the $238 and $240 resistance levels.
Ethereum Price Holding Key Supports
After a failed attempt to clear the $238 resistance, Ethereum price extended its decline against the US Dollar. ETH broke the $232 and $230 support levels, and settled below the 100 hourly simple moving average.
There was a break below the 23.6% Fib retracement level of the upward move from the $218 low to $237 high. However, the decline was protected by the $228 support zone.
A low was formed near $228 and it seems like the 50% Fib retracement level of the upward move from the $218 low to $237 high acted as a strong support. Ether price is currently rising and trading above $230.
It is currently attempting an upside break above $234 and the 100 hourly simple moving average. There is also a key bullish flag pattern forming with resistance near $234 on the hourly chart of ETH/USD. An upside break above the channel resistance at $234 and a close above the 100 hourly simple moving average could open the doors for a test of $238 or $240.
To continue higher, the price must settle above the $240 resistance. In this scenario, the price could continue higher towards the $250 and $255 levels.
Fresh Bearish Wave in ETH?
If Ethereum continues to struggle near the $238 resistance or $240, it could decline again. An initial support is near the $230 level. The main support is now near the $225 level.
A clear break below the $225 support may perhaps decrease the chances of a bullish break above $240 in the coming sessions. The next support is at $218, followed by $215.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level, with a bullish angle.
Major Support Level – $230
Major Resistance Level – $238
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Aayush Jindal, Khareem Sudlow
