Beware Bears: Indicators Suggest Ethereum Could Still Rally Above $250

Aayush Jindal

1 year ago

2 mins read

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Ethereum traded to a new monthly high near $249 before correcting lower against the US Dollar. ETH price is currently trading nicely above $253 and it could rally again towards $250.

ETH price is holding the main $235 support level and the $232 pivot level against the US Dollar.
It is facing a couple of important hurdles near $240 and $250.
There is a crucial contracting triangle forming with resistance near $242 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair could rally again above $245 as long as it is above the 100 simple moving average (4-hours).

Ethereum Price Holding Key Supports

This past week, Ethereum extended its rise above the $240 resistance against the US Dollar. ETH price traded close to the $250 resistance level and settled well above the 100 simple moving average (4-hours).

Ether traded as high as $249 and started a fresh downside correction (similar to bitcoin). There was a break below the $242 and $240 support levels, but the $235 support zone acted as a strong buy region.

The price is currently rising and trading above the 23.6% Fib retracement level of the downside correction from the $249 swing high to $235 low. It is currently facing a strong resistance near the $240-$242 region.

Ethereum price trades above $235. Source: TradingView.com

There is also a crucial contracting triangle forming with resistance near $242 on the 4-hours chart of ETH/USD. The triangle resistance coincides with the 50% Fib retracement level of the downside correction from the $249 swing high to $235 low.

If there is a successful break above the triangle resistance at $242, the price is likely to start a fresh increase. The main resistance on the upside is still near the $250 level, above which the price could start a strong rally towards $262 and $265.

Fresh Decline in ETH?

If Ethereum fails to continue higher above the $240 and $242 resistance levels, there are chances of a downside break. The first major support is near the triangle lower trend line at $238.

The mains support is near the $235 level and the 100 simple moving average (4-hours), below which the price could dive sharply towards the $$220 support area.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is currently just above the 50 level.

Major Support Level – $235

Major Resistance Level – $242

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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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