- ETH price seems to be trading in a broad range below the $265 resistance against the US Dollar.
- The price recently recovered after testing the $230-231 support area.
- There is a major contracting triangle forming with resistance at $260 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair remains well supported on dips and it is likely to break the $265 and $270 resistances.
Ethereum price is preparing for the next big move versus the US Dollar, similar to bitcoin. ETH could rally strongly once it clears the key $265 resistance level in the near term.
Ethereum Price Weekly Analysis
This past week, Ethereum price mostly traded in a range above the $230 support level against the US Dollar. The ETH/USD pair failed to clear the $265 resistance level and moved towards the range support. It tested the range support near the $231 level and recently started a fresh increase. It climbed back above the $255 level and remained well above the 100 simple moving average (4-hours). The price traded as high as $258.63 and it is currently correcting lower.
On the downside, an immediate support is near the $245 level. Moreover, the 50% Fib retracement level of the last wave from the $232 swing low to $258 swing high is also near the $245 level. Below $245, the next key support is near the $238 level. More importantly, it seems like there is a major contracting triangle forming with resistance at $260 on the 4-hours chart of ETH/USD. The triangle support is near the $238 level, below which the price may test the $232 support area.
If there is a daily close below the $230 support, the price could start a strong decline in the near term. On the upside, the triangle resistance is near the $258 level. However, the main resistances are near $260 and $265. A successful close above the $265 resistance is likely to open the doors for a larger upward move. The next key resistances are near $270 and $280. Above $280, the price could test the $300 level in the coming days.
The above chart indicates that Ethereum seems to be consolidating in a broad range above the $232 support area. On the upside, the bulls must gain momentum above the $265 level to start a strong rally. If they continue to struggle, there are chances of a strong decline below $230.
4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
4 hours RSI – The RSI for ETH/USD recently declined below the 50 level and it could continue to move down.
Major Support Level – $230
Major Resistance Level – $265