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Ethereum Smashes Key Resistance: Technicals Indicate Fresh Rally To $288

Avatar Aayush Jindal 2 months ago

Ethereum remained well bid above the $240 support area against the US Dollar. ETH price started a fresh increase and it could soon revisit the $288-$289 resistance zone.

  • Ethereum is recovering losses and it recently climbed above the $265 resistance against the US Dollar.
  • The price is gaining pace and it could rise further above $270 and $275.
  • Yesterday’s highlighted key bearish trend line was breached with resistance near $262 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is slowly recovering and it could test the $9,800 and $10,000 resistance levels.

Ethereum Price Rising Again

Recently, we saw a strong downside correction in Ethereum below the $260 support against the US Dollar. ETH price even declined below the $250 support and the 100 hourly simple moving average.

Finally, it traded close to the $235 support area and a swing low was formed near $236. A support base is formed above $240 and the price is currently rising. It broke a few key hurdles near the $250 and $255 levels.

More importantly, yesterday’s highlighted key bearish trend line was breached with resistance near $262 on the hourly chart of ETH/USD. The pair gained traction above the 50% Fib retracement level of the downside correction from the $289 high to $236 low.

Ethereum Price

Ethereum Price

Additionally, the price settled above the $260 level and the 100 hourly simple moving average. Ethereum is now consolidating near the 61.8% Fib retracement level of the downside correction from the $289 high to $236 low.

It seems like the bulls are preparing for a push above the $272 and $275 resistance levels. In the mentioned case, the price is likely to rise strongly towards the $280 and $285 levels.

The main hurdle on the upside is near the $288-$289 area, above which there are chances of a strong rise towards the $300 and $305 levels in the near term.

Dips Remain Supported

If the price fails to continue above the $275 resistance, it could correct a few points. An initial support is near the $264 level and the 100 hourly SMA.

Therefore, if Ethereum fails to stay above the 100 hourly SMA, the bulls are likely to struggle to protect the $260 support. In the mentioned case, the price may perhaps correct towards the $255 support area.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now back in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently rising and it is well above the 50 level.

Major Support Level – $262

Major Resistance Level – $275

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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