- ETH price failed to break the $230 resistance area and declined recently against the US Dollar.
- The price is currently traded above the main supports near the $222 and $224 levels.
- There is a key bullish trend line forming with support near $222 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair might start a decent upward move as long as it is above the $220 support.
Ethereum price is currently consolidating above $220 versus the US Dollar, while bitcoin is up 4%. ETH price must stay above the $220 support to climb higher.
Ethereum Price Analysis
Yesterday, we saw a downside correction in bitcoin and Ethereum price against the US Dollar. Later, BTC/USD climbed back above $11,800, but ETH/USD faced a lot of hurdles. The pair formed a decent support base above the $222 level. There was a decent upside correction above the $225 level and the 100 hourly simple moving average. Moreover, the price traded above $228, but it failed to gain strength above the $230 resistance.
As a result, there was a fresh decline below $225 and the price retested the $222 support. A swing low was formed near the $220 level and the price is currently consolidating. It is above the $225 level plus the 50% Fib retracement level of the recent decline from the $231 high to $220 swing low. However, the bulls are facing a strong resistance near the $227 and $230 levels.
Moreover, the 61.8% Fib retracement level of the recent decline from the $231 high to $220 swing low is near the $227 level. Additionally, there is a connecting bearish trend line forming with resistance near $228 on the hourly chart of ETH/USD. Therefore, an upside break above the $227, $228 and $230 resistance levels is needed for a strong rise in the near term.
On the downside, there are many supports above the $220 and $222 levels. There is also a key bullish trend line forming with support near $222 on the same chart. Therefore, a downside break below the $222 and $220 support levels might start another bearish wave.
Looking at the chart, Ethereum price is clearly trading above the key $220 and $222 support levels. As long as there is no downside break below the $220 support, the price could bounce back. Having said that, a successful break above the $230 resistance is needed for an upside acceleration towards $235 and $240.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is likely to climb above the 50 level.
Major Support Level – $220
Major Resistance Level – $230