Ethereum is currently consolidating gains above the $307 and $310 support levels against the US Dollar. ETH price must surpass the $325 resistance zone to trigger a fresh rally.
- Ethereum is holding a couple of important supports above the $307 and $310 levels.
- The price is facing a crucial resistance near the $322 and $325 levels, but it is above the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $321 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $322 and $325 resistance levels for a fresh rally in the near term.
Ethereum Price Consolidating Gains
In the past few sessions, Ethereum traded in a broad range above the $310 support against the US Dollar. ETH price made a couple of attempts to clear the $325 resistance, but it failed.
The last swing high was formed near the $325 level before the price started a downside correction. It traded below the $320 level, but it is still well above the 100 hourly simple moving average. Ether is currently testing the 50% Fib retracement level of the recent wave from the $307 swing low to $325 high.
On the downside, there is a major support forming near the $312 level and the 100 hourly simple moving average. It is close to the 61.8% Fib retracement level of the recent wave from the $307 swing low to $325 high.
Ethereum price holding $310. Source: TradingView.com
It seems like there is a key contracting triangle forming with resistance near $321 on the hourly chart of ETH/USD. If ether price breaks the triangle resistance, it could even attempt to clear the $325 resistance. A successful close above the $325 resistance may perhaps open the doors for a sharp rally in the coming sessions. The next target for the bulls might be $350.
Dips Likely to be Contained in ETH
There are many key supports forming near $312, $310 and $307. If the price breaks the $312 support, it might extend its decline towards the $307 support.
The next major support is near the $300 level (the breakout zone), below which the price is likely to continue lower towards the $290 level in the near term.
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 50 level.
Major Support Level – $307
Major Resistance Level – $325
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Author: Aayush Jindal