Ethereum is currently trading above the $205 and $208 support levels against the US Dollar. ETH price could start a strong increase if it clears the $215 and $216 resistance levels.

• Ethereum is showing a lot of positive signs above the key $205 support zone.
• The price is currently trading above $210 and it is well above the 100 hourly simple moving average.
• Yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must surpass the $215 and $216 resistance levels for a sustained upward move.

Ethereum Price Holding Uptrend Support

Ethereum price started a short term downside correction after it failed to clear the $216 resistance against the US Dollar. ETH price corrected lower and traded below the $212 support level.

The price even spiked below the $210 level, but it stayed well above the 100 hourly simple moving average. During the decline, ether price traded below the 50% Fib retracement level of the upward move from the $206 low to $216 high.

However, the bulls are currently defending the $208 support zone. The 61.8% Fib retracement level of the upward move from the $206 low to $216 high is also acting as a key support.

It seems like yesterday’s major bullish trend line is active with support near $210 on the hourly chart of ETH/USD. On the upside, an initial resistance is forming near the $214 level and a connecting bearish trend line.

Ethereum Price

If there is a clear break above the trend line, the price could attempt to surpass the main $215 and $216 resistance levels. A successful close above the $216 level is likely to open the doors for a strong push towards the $225 and $230 levels in the near term.

Bearish Wave?

If Ethereum fails to clear the $215 and $216 resistance levels, there are chances of an extended decline. The next support below the trend line is near the $206 level and the 100 hourly simple moving average.

A downside break below the $205-$206 support zone could open the doors for a large decline. In the mentioned case, the bulls may perhaps struggle to protect the $200 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently near the 50 level, with a bearish angle.

Major Support Level – $206

Major Resistance Level – $216

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.