Ethereum (ETH) Price Testing Key Support: $250 Holds The Key

Aayush Jindal

1 year ago

2 mins read

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ETH price started a downside correction after trading towards the $265 level against the US Dollar.
The price declined below the $255 level, but the $250 support area is acting as a support.
There is a key bullish trend line forming with support near $253 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $250 pivot level to start a fresh increase in the near term.

Ethereum price corrected lower below $260 and $255 versus the US Dollar, but it was stable vs bitcoin. ETH price is likely to bounce back above $260 as long as it is above the $250 support.

Ethereum Price Analysis

Recently, there was a sharp upward move in Ethereum price above the $250 and $255 resistances against the US Dollar. The ETH/USD pair even broke the $260 level and settled above the 100 hourly simple moving average. Finally, the price traded towards the $265 level and recently started a downside correction. A swing high was formed at $264 and the price declined below the $260 support.

There was a break below the 23.6% Fib retracement level of the last wave from the $237 swing low to $264 high. However, the $252 level acted as a strong support. Moreover, there is a key bullish trend line forming with support near $253 on the hourly chart of ETH/USD. The 100 hourly SMA is also acting as a support near the $252 area. Besides, the 50% Fib retracement level of the last wave from the $237 swing low to $264 high is at $251.22 to act as a support.

The main barrier is near the $250 level, below which the bulls could lose control. In the mentioned case, the price may perhaps slide towards the $244 level. It represents the 76.4% Fib retracement level of the last wave from the $237 swing low to $264 high.

On the upside, an initial resistance is near the $256 level. If there is a break above $256 and $258, the price could move further higher. The main resistance is near the $264 and $265 levels, above which the price is likely to test $270.

Looking at the chart, Ethereum price is clearly trading near a couple of important supports near $252 and $250. As long as the price is above $250, it is likely to start a fresh upward move in the coming sessions.

ETH Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now back below the 50 level, with a few positive signs.

Major Support Level – $250

Major Resistance Level – $260

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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