Ethereum (ETH) Price Reversed Gains: Support Turned Resistance

Aayush Jindal

1 year ago

2 mins read

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ETH price traded to a new 2019 high close to $290 and declined heavily against the US Dollar.
The price reversed most its gains and traded below the $260 and $250 support levels.
There was a break below a major bullish trend line with support at $266 on the hourly chart of ETH/USD (data feed via Kraken).
The pair tested the $240 level and it is currently correcting higher towards the $260 and $264 resistances.

Ethereum price declined heavily below $260 versus the US Dollar, but remained flat vs bitcoin. ETH price is currently correcting higher, but it could face a strong resistance near the $265 area.

Ethereum Price Analysis

Yesterday, there were further gains in Ethereum price above the $280 level against the US Dollar. The ETH/USD pair even broke the last swing high and traded to a new 2019 high near $290. However, the bulls failed to gain momentum and the price declined sharply below $280. There was a major downward move below the $270 and $265 support levels. The price even settled below the $265 level and the 100 hourly simple moving average.

Moreover, there was a break below a major bullish trend line with support at $266 on the hourly chart of ETH/USD. Finally, there was a spike below the $245 support level. A swing low was formed near $240 and the price is currently correcting higher. It moved above the 23.6% Fib retracement level of the recent decline from the $290 high to $240 low. However, there are many hurdles on the upside near the $262 and $265 levels (the recent support zones).

Besides, the 50% Fib retracement level of the recent decline from the $290 high to $240 low is also near the $264 level to prevent gains. The price is likely to struggle to surpass the $264 level and there is a risk of a fresh decline. On the downside, an immediate support is near the $252 level, below which the price might trade towards the $245 support area.

Looking at the chart, Ethereum price is clearly trading near a crucial juncture below $265. As long as there is no close above $265, there is a risk of another drop. On the downside, the main support is at $245, below which the price could even break the $240 level and trade further lows. The next main support is near the $232 level, where the bulls may emerge.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly reducing its bearish slope, with many negative signs.

Hourly RSI – The RSI for ETH/USD is currently recovering from the oversold readings and remain well below the 50 level.

Major Support Level – $245

Major Resistance Level – $265

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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