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Ethereum declined heavily after multiple rejections near $250 against the US Dollar. ETH price is now recovering, but it must settle above $240 to start a fresh increase.
- ETH price is currently correcting higher from the $225 swing low against the US Dollar.
- It is now trading above the $230 level and the 100 simple moving average (4-hours).
- Earlier, there was a break below a key ascending channel with support at $244 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could also move back into a positive zone if it closes above the $240 resistance.
Ethereum Price is Facing Hurdles
This past week, Ethereum failed to settle above the $250 resistance level against the US Dollar. As a result, ETH price started a major decline below the $245 and $240 support levels.
The decline was initiated after there was a break below a key ascending channel with support at $244 on the 4-hours chart of ETH/USD. The pair even broke the $230 support and the 100 simple moving average (4-hours).
Ether price traded as low as $225 and recently started an upside correction. It broke the $230 and $232 resistance levels. However, the bulls are currently facing hurdles near the $238 level or the 50% Fib retracement level of the recent decline from the $250 high to $225 low.
It seems like there is a crucial hurdle forming near the $238 and $240 levels. The 61.8% Fib retracement level of the recent decline from the $250 high to $225 low is also near $241.
A successful break above the $240 resistance zone is likely to push the price into a positive zone. The next key resistance is near the $250 level, above which the price could surge towards the $265 level.
Fresh Decline in ETH?
On the downside, there is a decent support forming near the $234 level and the 100 simple moving average (4-hours). If Ethereum fails to stay above the $234 support, it could continue to move down below $230.
The main supports are near the $225 and $222 levels, below which ether is likely to accelerate lower towards the $205 and $200 support levels.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – $230
Major Resistance Level – $240
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