Ethereum (ETH) Price In Corrective Decrease: $260 Support Holds Key

Aayush Jindal

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

ETH price started a downside correction after it failed to clear $275 against the US Dollar.
The price declined below the $265 support level, but it is holding the $260 and $262 supports.
Recently, there was a break above a declining channel with resistance at $264 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to climb higher again as long as it is trading above the $260 support area.

Ethereum price is showing signs of a correction versus the US Dollar, and remains bearish vs bitcoin. ETH price is likely to bounce back once the current correction is complete.

Ethereum Price Analysis

After struggling to surpass the $275 resistance, Ethereum price started a downside correction against the US Dollar. The ETH/USD pair traded below the $270 and $265 support levels. There was also a close below the $270 level and the 100 hourly simple moving average. Moreover, the price traded below a major bullish trend line with support near $270 on the hourly chart.

It opened the doors for more losses, but the $262 and $260 support levels remained intact. A swing low was formed near $261 and the price is currently moving higher. It surpassed the 23.6% Fib retracement level of the recent decline from the $275 high to $261 low. Moreover, there was a break above a declining channel with resistance at $264 on the hourly chart of ETH/USD.

The pair is currently testing the $266 level and the 100 hourly simple moving average. If there is a successful break above the 100 hourly simple moving average, the price could rise towards the $270 resistance. An intermediate resistance is near the 50% Fib retracement level of the recent decline from the $275 high to $261 low. A successful close above the $268 and $270 levels is likely to start a fresh increase in the near term.

On the downside, an immediate support is near the $264 level. However, the main supports are $262 and $260. If there is a close below the $260 support, the price is likely to decline further.

Looking at the chart, Ethereum price remains in a positive zone as long as it is above $260. If it fails to hold the $260 support, there could be a downside extension below the $258 and $255 supports. On the upside, the key hurdles are near $270, $275 and $280.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving back in the bullish zone, with positive signs.

Hourly RSI – The RSI for ETH/USD is still below the 50 level, with a flat structure.

Major Support Level – $260

Major Resistance Level – $270

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he's trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush's journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.