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Ethereum Bulls Just Doesn’t Want To Give Up, Fresh Rally Incoming?

Avatar Aayush Jindal 3 months ago

Ethereum traded close to the $240 support area and recently recovered against the US Dollar. ETH price is now trading above $255 and it is likely to continue higher towards $270 and $275.

  • Ethereum is slowly recovering above the $255 and $260 levels against the US Dollar.
  • The price is facing a couple of key hurdles near the $265 and $270 levels.
  • There was a break above a short term declining channel with resistance near $256 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is currently consolidating above the key $9,500 support area.

Ethereum Price Could Recover Further

Yesterday, we discussed the chances of more downsides towards the $240 level in Ethereum against the US Dollar. ETH price did move down below $250 and tested the $245 support area.

A swing low is formed near $244 and the price is currently recovering higher. It surpassed the 23.6% Fib retracement level of the recent decline from the $286 high to $244 low.

During the rise, there was a break above a short term declining channel with resistance near $256 on the hourly chart of ETH/USD. Ethereum is now trading above the $255 level, but it is facing a couple of hurdles near the $262 and $265 levels.

Ethereum Price

Ethereum Price

The first key resistance is near the $265 level. It coincides with the 50% Fib retracement level of the recent decline from the $286 high to $244 low. Moreover, the 100 hourly simple moving average is also near the $265 level to act as a hurdle.

Therefore, an upside break above the $265 level and the 100 hourly simple moving average might open the doors for a decent upward move in the near term. In the mentioned case, the price is likely to recover towards the $270 and $275 levels.

Downsides Supported

If Ethereum price fails to continue above the $265 resistance and the 100 hourly simple moving average, it could decline once again. An initial support is near the $255 level.

The main support on the downside is near the $245 and $240 levels. If the bulls fail to defend the $240 support area, there is a risk of a larger decline towards the $210 level in the near term. An intermediate support is near the $232 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is currently moving in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now just above the 50 level, with positive signs.

Major Support Level – $245

Major Resistance Level – $265

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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