Ethereum Trading Near Crucial Juncture, Can Bulls Save The Day?

Aayush Jindal

1 year ago

2 mins read

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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

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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