Ethereum Retreats From $250 But 100 Hourly SMA Could Trigger Fresh Surge

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained traction above the $245 resistance, but it struggled to clear the $250 resistance against the US Dollar. ETH price is likely to find support near $245 and it could rally again.

Ethereum traded to a new intraday high after a spike above the $245 resistance.
The price is currently retreating from the $250 resistance, but trading well above the 100 hourly simple moving average.
There was a break above a key contracting triangle with resistance near $243 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to remain well bid above the $245 and $244 support levels.

Ethereum Price Showing Positive Signs

After trading in a range for many sessions, Ethereum price spiked above the $244 and $1245 resistance levels. ETH formed a strong support base above $240 and the 100 hourly simple moving average before starting the recent rise.

During the rise, there was a break above a key contracting triangle with resistance near $243 on the hourly chart of ETH/USD. The pair tested the $250 resistance zone, where the bulls lost momentum and sellers prevented more gains.

Ether price is currently correcting lower and trading below the $248 level. There was a spike below the 50% Fib retracement level of the recent rise from the $242 low to $250 high.

The previous key resistance near the $245 level is currently acting as a strong support. The 61.8% Fib retracement level of the recent rise from the $242 low to $250 high is also acting as a strong support.

On the upside, the $250 level seems to the next major hurdle for the bulls. A successful daily close above the $250 level is needed for more gains. The next key resistance could be near the $265 level.

False Break in ETH?

The $245 level is an initial support for Ethereum. The main support is now forming near the $244 level and the 100 hourly simple moving average.

If the price fails to stay above the 100 hourly simple moving average, there are high chances of a sharp decline below the $240 support. In the stated case, the price might dive towards $230 or even $225.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.

Major Support Level – $244

Major Resistance Level – $250

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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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