After trading to a new swing low at $226, Ethereum price started a steady recovery against the US Dollar. The ETH/USD pair traded above the $230 and $235 resistance levels to move into a positive zone. It even settled above the $240 level and the 100 hourly simple moving average. Moreover, there was a break above the 50% Fib retracement level of the major decline from the $255 high to $226 low.
During the climb, there was a break above a key bearish trend line with resistance near $237 on the hourly chart of ETH/USD. Finally, the bulls pushed the price above the $245 level and the 61.8% Fib retracement level of the major decline from the $255 high to $226 low. The price traded close to the $250 level, but it struggled to continue higher. It tested the $248 level and the 76.4% Fib retracement level of the major decline from the $255 high to $226 low. At the moment, the price is consolidating gains above the $240 level and the 100 hourly SMA.
On the upside, an initial resistance is at $248 and $250, above which the price might recover further. However, the main challenge for the bulls is near the $255 level. If there is an upside break above $255, the price is likely to move into a positive zone. Conversely, if the price fails to move above $250 or $255, there could be a fresh decline.
Looking at the chart, Ethereum price seems to be trading nicely above the $242 and $240 levels. As long as there is no close below $240, there are chances of a further upsides in the near term. Below $240, the price could retest the $233 pivot area or the $235 support zone.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone, but with less negative signs.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level and is correcting lower.
Major Support Level – $240
Major Resistance Level – $255
Author: Aayush Jindal