Ethereum (ETH) Price Approaching Key Support: Buy Dips?

Aayush Jindal

1 year ago

2 mins read

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ETH price topped near the $280 level and recently started a downside correction against the US Dollar.
The price is slowly moving lower towards a couple of important supports near $265.
Yesterday’s highlighted key ascending channel is intact with support near $266 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to find a strong buying interest near the $266 and $265 support levels.

Ethereum price is currently correcting recent gains versus the US Dollar, but declining vs bitcoin. ETH could bounce back as long as it is trading above $265 and the 100 hourly SMA.

Ethereum Price Analysis

After a strong upward move, Ethereum price failed to clear the $280 resistance against the US Dollar. The ETH/USD pair formed a new weekly high near the $280 level and recently started a downside correction. It traded below the $275 and $272 support levels. Besides, there was a push below the 23.6% Fib retracement level of the last leg from the $246 low to $280 swing high. However, the price remains supported above the $265 and $262 levels.

Moreover, yesterday’s highlighted key ascending channel is intact with support near $266 on the hourly chart of ETH/USD. The previous resistance area near the $264-265 is likely to act as a strong support zone for the bulls. The next key support is near the $262 zone. It represents the 50% Fib retracement level of the last leg from the $246 low to $280 swing high. Finally, the 100 hourly simple moving average is also near the $262 level to act as a strong support. Therefore, there are many important support levels near $265 and $262.

As long as the price is holding the $262 support, it is likely to bounce back above $270 and $275. The main hurdle remains $280, above which the price could start a solid upward move towards the $295 and $300 levels. An immediate resistance is near $275 and the channel trend line. Once there is a break above $276, the price could attempt to surpass $280 and $282.

Looking at the chart, Ethereum price is clearly correcting lower above the main $262 support area. If the bulls fail to defend the $262 support and the 100 hourly SMA, the price might extend losses. The next key support on the downside is near the $258 level, below which the price is likely to accelerate towards $252.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone, with negative signs.

Hourly RSI – The RSI for ETH/USD recently declined below the 50 level, with a bearish angle.

Major Support Level – $262

Major Resistance Level – $276

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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