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Key Highlights
- ETH price after a decline towards $274 against the US Dollar found support and recovered well.
- There is a crucial bearish trend line forming with resistance at $305 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair has to break the $305 resistance and settle above the 100 SMA (H4) to challenge $340.
Ethereum price is back in the positive zone against the US Dollar and Bitcoin. However, ETH/USD needs to gain momentum above $305 and $310 for more gains.
Ethereum Price Resistance
This past week, we saw a couple of swing moves in ETH price towards $274 against the US Dollar. The price tested a major support area at $274 and started an upside move. The recovery was solid as the price moved above $300 and the 100 simple moving average (H4). However, the upside move was capped by the $305.50 resistance. There is also a crucial bearish trend line forming with resistance at $305 on the 4-hours chart of ETH/USD.
The trend line resistance prevented gains and pushed the price back below $300 and 100 SMA (H4). The price is currently trading near the 23.6% Fib retracement level of the last wave from the $274.65 low to $305.22 high. There is a decent support at $289.00 and the 50% Fib retracement level of the last wave from the $274.65 low to $305.22 high. It must hold losses below $288 in the short term or there is a risk of a downside move towards $280.
On the upside, buyers need to break the trend line resistance and $305 for more gains. The next resistance is at $310 followed by the $325. The most important resistance is at $340 where sellers would appear.
4-hours MACD – The MACD is about to move back in the bullish zone.
4-hours RSI – The RSI is currently just above the 50 level.
Major Support Level – $289
Major Resistance Level – $305
Charts courtesy – SimpleFX
