This Scenario Will Trigger A New Ethereum Rally: Key Levels To Watch

Aayush Jindal

1 year ago

2 mins read

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Ethereum is trading above a major support at $225 against the US Dollar. ETH could start a fresh rally if it clears the $228 and $230 resistance levels in the near term.

Ethereum is trading with a positive bias above the $224 and $225 support levels.
The price seems to be positioning for a break above the $228 and $230 resistance levels.
There is a decisive ascending channel forming with support near $224 on the hourly chart of ETH/USD (data feed via Kraken).
The pair may perhaps dive if it fails to stay above the $224 and $222 support levels.

Ethereum Price is Holding Key Support

Recently, Ethereum price made another attempt to surpass the $228 and $230 resistance levels against the US Dollar. ETH price failed to continue higher and formed a swing high near the $230 level.

It corrected lower below the $226 level and the 100 hourly simple moving average. However, it remained well bid above the $222 support. It is currently rising and trading above the 23.6% Fib retracement level of the recent decline from the $230 swing high to $222 low.

On the upside, an initial resistance is near the $226 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $230 swing high to $222 low.

thereum price trades near $225. Source: TradingView.com

It seems like there is a decisive ascending channel forming with support near $224 on the hourly chart of ETH/USD. The first major resistance is near the $228 level, followed by the all-important $230 level. A successful close above the $230 resistance could trigger a fresh rally in ether above the $232 and $235 levels.

Downside Reaction in ETH?

If Ethereum fails to stay above the $224 level and the channel support, it could retest the $222 support level. Any further losses may perhaps put a lot of pressure on ether bulls.

A bearish break below the $222 and $220 support levels may perhaps clear the path for a strong decline towards the $215 level and then to $205 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is struggling to gain bullish momentum.

Hourly RSI – The RSI for ETH/USD is currently sliding and it is below the 50 level.

Major Support Level – $222

Major Resistance Level – $230

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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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