Ethereum is currently trading in a close range just above the $240 support when placed in alongside the US Dollar. A close analysis points out that ETH could soon rise back to the $250 resistance mark and this could be sooner than later.
After recently testing the $230 support region, the price of Etheruem began a new upward journey and settled nicely above the $240 support level and the 100 hourly SImple Moving Average. The charts showed a recent High at $246 shortly before price decline to $242. Despite that sharp dip, dips were protected and the price range is just around the $240 support.
It recovered above the 50% Fib retracement level of the recent decline from the $246 high to $239 low. On the upside, there is a major resistance forming near the $244 and $245 levels. There is also a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD.
Ethereum Price Chart
The 76.4% Fib retracement level of the recent decline from the $246 high to $239 low is also acting as a resistance. If ether price breaks the triangle resistance and $245, it could start a strong increase.
An active initial barrier is close to the $250 resistance area and if price crosses this, then bullish runs are expected as price rise is pegged at anywhere above $255 and even $260 levels in the short term.
Counter Reactions
If the trend movement fails to break the triangle resistance, it could resume a significant decline below $242 support and new support will be around $240 and 100 SMA
A successful daily close below the $240 support zone could open the doors for a larger decline. In the stated case, the price might accelerate lower towards the $230 and $225 levels in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling to stay above the 50 level.
Major Support Level – $240
Major Resistance Level – $245