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Ethereum failed to continue higher above the $252 resistance and declined against the US Dollar, similar to bitcoin. However, ETH price is now trading near a key uptrend support.
- ETH price is down 5% and it is now trading below the $235 level against the US Dollar.
- The price struggled to gain strength above $250 and declined heavily.
- There is a key bullish trend line forming with support near $229 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair could either bounce back above $235 or it is likely to decline towards the $215 support.
Ethereum Price Testing Key Support
This past week, Ethereum started a steady rise above the $220 level against the US Dollar. ETH price gained traction and traded above the key $235 resistance and the 100 simple moving average (4-hours).
The upward move was such that the price climbed above the $245 level, but it seems like the bulls failed to remain in action above the $250 level. A swing high is formed near $252 and the price is currently declining.
There was a break below the $245 and $240 support levels. Ethereum is down 5% and it is now trading below the $235 level. Moreover, the price traded below the 50% Fib retracement level of the upward move from the $220 low to $252 high.
The price is now trading near the key $230 support level, plus the 61.8% Fib retracement level of the upward move from the $220 low to $252 high.
There is also a key bullish trend line forming with support near $229 on the 4-hours chart of ETH/USD. The pair is clearly trading near a crucial juncture at $230. If the bulls are able to defend the trend line support, the price could bounce back above the $235 and $240 resistance levels.
The main resistances on the upside are near $250 and $255, above which the price is likely to rise steadily towards the $280 level.
More Losses?
The trend line support and $230 are very important. If Ethereum fails to stay above the trend line support, there is a risk of a sharp decline towards the $220 and $215 levels in the near term.
Overall, the price could either bounce back above $235 or it is likely to decline towards the $215 support in the near term.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly moving in the bearish zone.
4 hours RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $230
Major Resistance Level – $240
