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Ethereum started a downside correction from well above the $280 level against the US Dollar, similar to bitcoin. ETH price found support near $245 and it is currently forming a fresh bullish trend.
- ETH price is trading nicely above the $245 and $250 support levels against the US Dollar.
- The price is slowly rising and it could continue to rise if it breaks the $270 barrier.
- There is a key bullish trend line forming with support near $254 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if it successfully clears the $270 and $272 levels.
Ethereum Price Could Resume Its Uptrend
This past week, Ethereum retested the $285-$288 resistance area against the US Dollar. However, ETH price failed to continue higher and it recently started a fresh downside correction below $270.
There was a clear break below the $260 support, but the price remained well bid above the 100 simple moving average (4-hours). It seems like the bulls protected the $242 and $245 support levels.
Moreover, there is a key bullish trend line forming with support near $254 on the 4-hours chart of ETH/USD. A swing low is formed near $243 and the price is currently rising above the $250 level.
Ethereum surpassed the 23.6% Fib retracement level of the downward move from the $287 high to $243 low. An immediate resistance on the upside is near the $265 level.
The 50% Fib retracement level of the downward move from the $287 high to $243 low is near the $265 level to act as a hurdle. The first key resistance is near the $270 level (the recent breakdown zone).
Therefore, a successful break and close above the $270 level could open the doors for a fresh increase and rally. In the mentioned case, the price might climb above the $280 and $285 resistance levels. The main target for the bulls is $300 in the coming days.
Downsides Remain Well Bid
On the downside, an initial support is seen near the $260 level. The first key support for Ethereum is near the trend line, $255, and the 100 simple moving average (4-hours).
The next support is still near the $242 and $245 levels, below which there is a risk of a sharp decline below the key $230 support area in the near term.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.
4 hours RSI – The RSI for ETH/USD is rising nicely above the 50 level.
Major Support Level – $255
Major Resistance Level – $270
