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Ethereum is gaining bullish momentum and it recently tested the $250 resistance against the US Dollar. ETH price is likely to continue higher above the $255 and $260 resistance levels.
- Ethereum is showing a lot of positive signs above the $240 level.
- The price is currently struggling to gain bullish momentum above the $250 resistance zone.
- There is a key bullish trend line forming with support near $242 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to accelerate higher above the $255 and $260 levels in the near term.
Ethereum Price Gaining Traction
Yesterday, we discussed the chances of Ethereum price testing the $250 resistance. ETH price did gain bullish momentum above the $245 level and tested the $250 resistance zone.
A high is formed near $251 and the price is trading well above the 100 hourly simple moving average. It is currently struggling to gain strength above the $250 and $252 levels.
Ether price tested the 23.6% Fib retracement level of the recent wave from the $235 low to $251 high. The first major support on the downside is seen near the $242 level. There is also a key bullish trend line forming with support near $242 on the hourly chart of ETH/USD.
The trend line is close to the 50% Fib retracement level of the recent wave from the $235 low to $251 high. If there is a downside break below the trend line support, there is a risk of more downsides below the $240 level.
On the upside, Ethereum must gain momentum above the $250 resistance zone. An immediate resistance is near the $255 level. The next major resistance is near the $265 level.
Any further gains could start a strong upward move and the price might surpass the $275 resistance to test $282 or even $295 in the coming days.
Downsides Could Be Limited in ETH
If Ethereum starts a downside correction, it is likely to find bids near the $242 and $240 levels. The next major support is seen near the $235 level.
Any further losses may perhaps lead the price towards the $232 support zone or the 100 hourly SMA, where the bulls are likely to take a stand.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level, with a positive bias.
Major Support Level – $242
Major Resistance Level – $255
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