Ethereum seems to be consolidating above the $232 and $230 support levels against the US Dollar. ETH price must break the $238 and $240 resistance levels to start a fresh increase.
- Ethereum is currently stuck in a range and trading near the 100 hourly simple moving average.
- The price must stay above the $232 and $230 support levels to avoid a bearish reaction.
- There is a major ascending channel forming with support near $232 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a strong increase if there is a clear break above the main $238 resistance.
Ethereum Price is Facing Hurdles
After trading as low as $218, Ethereum price started a fresh increase against the US Dollar. ETH broke the $220 and $225 levels to start a decent recovery. The bulls pushed the price above the $230 level, but they faced sellers near $236.
A high is formed near $236 and the price is currently consolidating gains. It corrected below the 23.6% Fib retracement level of the recent wave from the $218 low to $236 high. It seems like ether is currently stuck in a range and trading near the 100 hourly simple moving average.
There is also a major ascending channel forming with support near $232 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent wave from the $218 low to $236 high is also just below the channel support.
Ethereum Price Chart. Source: TradingView.com
The first hurdle on the upside is near the $236 level, but the main hurdle for the bulls is still near the $238 level. To move into a positive zone and start a fresh increase, the bulls need to clear the $238 and $240 resistance levels. In the mentioned case, the price could easily rise towards the $250 and $255 levels.
Another Drop in ETH?
Ethereum is still facing a major hurdle near the $238 zone. If the bulls fail to clear the $238 resistance, there are chances of a fresh decline in the near term.
The main supports are near the $232 and $230 levels, below which the price could start a major decline towards the $220 level. An intermediate support might be near $225 or $224.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a bullish angle.
Major Support Level – $230
Major Resistance Level – $238
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