Ethereum Trading Near Crucial Juncture And 100 SMA Holds The Key

Aayush Jindal

1 year ago

2 mins read

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Ethereum is trading in a tight range above the $240 support against the US Dollar. ETH price likely to accelerate higher above the $245 and $250 resistance levels in the near term.

Ethereum is trading above a major support and pivot area at $240.
The price is likely to surge if it clears the $245 resistance and the $250 barrier.
There is a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either rally above the $245 level or it might start a strong decrease below $240.

Ethereum Price Approaching Crucial Break

After testing the $230 support zone, Ethereum price started a fresh increase. ETH settled nicely above the $240 level and the 100 hourly simple moving average.

The recent high was formed near $246 before the price declined below $242. However, dips were protected and the price seems to be trading in a tight range above the $240 support.

It recovered above the 50% Fib retracement level of the recent decline from the $246 high to $239 low. On the upside, there is a major resistance forming near the $244 and $245 levels. There is also a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD.

The 76.4% Fib retracement level of the recent decline from the $246 high to $239 low is also acting as a resistance. If ether price breaks the triangle resistance and $245, it could start a strong increase.

An initial barrier is near the $250 level, above which the bulls are likely to aim a steady rise above the $255 and $260 levels in the near term.

Bearish Break in ETH?

If Ethereum fails to break the triangle resistance, it could start a fresh decline below the $242 support. The main support is now near the $240 level and the 100 hourly simple moving average.

A successful daily close below the $240 support zone could open the doors for a larger decline. In the stated case, the price might accelerate lower towards the $230 and $225 levels in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently struggling to stay above the 50 level.

Major Support Level – $240

Major Resistance Level – $245

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Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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