- ETH price is placed nicely above the $240 support area with positive signs against the US Dollar.
- There is a new contracting triangle forming with support near $240 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may well break the $247 and $250 resistance levels to trade to a new weekly high.
Ethereum price is consolidating gains against the US Dollar and bitcoin. ETH/USD could trade higher once there is a break above the $250-254 zone.
Ethereum Price Analysis
After trading above the $250 level, ETH price started a short-term consolidation against the US Dollar. The ETH/USD pair formed a high near $254 and corrected below the $240 level recently. There was a break below the $235 level as well, but the price found support near $232. Later, the price started a recovery and moved above the 50% Fib retracement level of the last decline from the $254 high to $232 low.
The upside move found resistance near the $247 and $250 levels. Buyers defended more gains and the price remained below $250. Moreover, buyers failed to push the price above the 61.8% Fib retracement level of the last decline from the $254 high to $232 low. At the moment, there is a new contracting triangle forming with support near $240 on the hourly chart of ETH/USD. The triangle is about to provide the next move either above $247 or below $240. Below $240, the price may perhaps retest the $232 low. On the other hand, a push above the $247 and $250 resistance could spark more gains.
Looking at the chart, ETH price could accelerate higher once there is a break above $250. The next target for buyers may be $254, above which the price may trade towards the $265-270 zone in the near term.
Hourly MACD – The MACD is slightly placed in the bullish zone.
Hourly RSI – The RSI is well above the 50 level.
Major Support Level – $240
Major Resistance Level – $250