Ethereum Topside Bias Vulnerable Unless ETH Surges Past $240

Aayush Jindal

1 year ago

2 mins read

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Ethereum seems to be consolidating above the $232 and $230 support levels against the US Dollar. ETH price must break the $238 and $240 resistance levels to start a fresh increase.

Ethereum is currently stuck in a range and trading near the 100 hourly simple moving average.
The price must stay above the $232 and $230 support levels to avoid a bearish reaction.
There is a major ascending channel forming with support near $232 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to start a strong increase if there is a clear break above the main $238 resistance.

Ethereum Price is Facing Hurdles

After trading as low as $218, Ethereum price started a fresh increase against the US Dollar. ETH broke the $220 and $225 levels to start a decent recovery. The bulls pushed the price above the $230 level, but they faced sellers near $236.

A high is formed near $236 and the price is currently consolidating gains. It corrected below the 23.6% Fib retracement level of the recent wave from the $218 low to $236 high. It seems like ether is currently stuck in a range and trading near the 100 hourly simple moving average.

There is also a major ascending channel forming with support near $232 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent wave from the $218 low to $236 high is also just below the channel support.

Ethereum Price Chart. Source: TradingView.com

The first hurdle on the upside is near the $236 level, but the main hurdle for the bulls is still near the $238 level. To move into a positive zone and start a fresh increase, the bulls need to clear the $238 and $240 resistance levels. In the mentioned case, the price could easily rise towards the $250 and $255 levels.

Another Drop in ETH?

Ethereum is still facing a major hurdle near the $238 zone. If the bulls fail to clear the $238 resistance, there are chances of a fresh decline in the near term.

The main supports are near the $232 and $230 levels, below which the price could start a major decline towards the $220 level. An intermediate support might be near $225 or $224.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a bullish angle.

Major Support Level – $230

Major Resistance Level – $238

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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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