- ETH price struggled twice to break the $317 level against the US Dollar and later moved down.
- There is a crucial breakout pattern forming with support at $270 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair must gain momentum above $302 to gain further in the near term.
Ethereum price is consolidating in the bullish zone against the US Dollar and Bitcoin. ETH/USD must clear $317 for a new monthly high.
Ethereum Price Upside Hurdle
This past week was mostly neutral for ETH price as it remained range bound below $317 against the US Dollar. There were two failures to break the $317 level, but buyers failed to gain momentum. As a result, there were a couple of downside moves towards $270. The downside move was protected by $270 and the 100 simple moving average on the 4-hour chart.
During the past few sessions, there was a downside reaction, but the $270 support is still intact. It looks like a contracting triangle pattern with support at $272-270 is forming on the 4-hours chart of ETH/USD. However, the price already traded below the 23.6% Fib retracement level of the wave from the $176.27 low to $317.19 high. It is a bearish sign, but there are chances of a recovery as long as the price is above $270. A close below the stated $270 support could ignite sharp declines in ETH/USD.
On the upside, the triangle resistance is near $301. A break above $301 would be a positive signal for further gains. Still, the price must break the $317 resistance to continue with the bullish trend. It all depends on which side the pair breaks – either above $317 or below $270.
4-hours MACD – The MACD is slowly moving into the bearish zone.
4-hours RSI – The RSI is currently below the 50 level and heading lower.
Major Support Level – $270
Major Resistance Level – $317
Charts courtesy – SimpleFX