Ethereum found support near $218 and started a sharp recovery wave against the US Dollar. ETH price is now facing hurdles near the $234 level and the 100 hourly SMA.
- Ethereum is up around 4% and it recovered nicely above $225 and $230.
- The price is currently struggling to gain pace above $234 and the 100 hourly simple moving average.
- There is a short-term ascending channel forming with support near $230 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to rise further if it clears the $234 and $235 resistance levels.
Ethereum Price Recovers Sharply
Yesterday, there was a downside extension in Ethereum price below the $225 and $220 levels against the US Dollar. ETH traded to a new weekly low at $218 and recently started a strong recovery wave.
There was a break above the $220 and $225 levels. The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $238 swing high to $218 low.
Ether even surpassed a key bearish trend line with resistance near $230 on the hourly chart of ETH/USD. However, the price is currently facing a strong resistance near the $234 level and the 100 hourly simple moving average.
The 76.4% Fib retracement level of the downward move from the $238 swing high to $218 low is also acting as a resistance. If ETH gains pace above the $234 and $235 resistance levels, it is likely to continue higher towards $240 and $245. Any further gains could lead the price towards the main $250 resistance in the near term.
Fresh Decline in ETH?
Ethereum is clearly facing a strong resistance near the $234 level and the 100 hourly SMA. If it fails to continue above the $234 zone, there is a risk of a fresh decline.
It seems like there is a short-term ascending channel forming with support near $230 on the same chart. A downside break below the channel support might increase selling pressure and the price might drop to $220 in the near term.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with positive signs.
Major Support Level – $225
Major Resistance Level – $234
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Author: Aayush Jindal