Ethereum Takes a Bit Hit But Uptrend Intact Above This Support

Aayush Jindal

1 year ago

2 mins read

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Ethereum jumped to a new 2020 high at $278 before correcting lower against the US Dollar. ETH is now consolidating and it is likely to continue higher above $275.

Ethereum seems to be struggling to clear the $275 resistance area against the US Dollar.
The price is currently consolidating gains above the $260 support area.
There is a key contracting triangle forming with support near $259 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is currently correcting lower, but it remains supported above $10,000.

Ethereum Price Remains In Uptrend

Recently, there were a couple of swing moves in Ethereum above the $260 pivot area against the US Dollar. ETH surged to a new 2020 high at $278 and recently corrected lower.

It broke the $265 support level, but remained well above the 100 hourly simple moving average. The correction was such that the price spiked below the $260 support area before the bulls emerged near the $255 level.

A swing low was formed near $254 before Ethereum rallied above. The last swing high was $278 before the price corrected again to $262. It is currently consolidating losses above the $260 support area.

Moreover, there is a key contracting triangle forming with support near $259 on the hourly chart of ETH/USD. If there is a downside break below the triangle support, the price could retest the $255 support area.

The main uptrend support for Ethereum is near the $248 level and the 100 hourly simple moving average. If the price fails to stay above the $248 support area, there could be a larger downside correction. The next major support is seen near the $230 area.

Fresh Increase?

On the upside, an initial resistance is near the $270 level. It coincides with the 50% Fib retracement level of the recent decline from the $278 high to $262 low.

A convincing break above the $270 area is needed for more gains. An immediate hurdle could be the 61.8% Fib retracement level of the recent decline from the $278 high to $262 low.

However, Ethereum must gain momentum above the $275 resistance area to start a strong wave towards the $300 resistance area in the near term. If not, it could correct further towards the $248 support level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is back above the 50 level, with positive signs.

Major Support Level – $260

Major Resistance Level – $275

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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