Key Highlights
- ETH price found support near the $209 level and later corrected higher against the US Dollar.
- There was a break above a short-term bearish trend line with resistance at $226 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to extend the current correction towards the $238 and $240 resistances.
Ethereum price is slowly correcting higher against the US Dollar and bitcoin. ETH/USD could correct further higher towards the $240 resistance in the near term.
Ethereum Price Correction
Recently, there was a sharp decline in ETH price from the $288 swing high against the US Dollar. The ETH/USD pair declined below $250, 100 hourly simple moving average and $225. It traded as low as $209 and later, it started an upside correction and traded above the $215 level. There was a push above the 23.6% Fib retracement level of the last decline from the $283 swing high to $209 low.
Moreover, there was a break above a short-term bearish trend line with resistance at $226 on the hourly chart of ETH/USD. The price tested the $230 resistance where sellers emerged. It seems like the price could dip a few points towards the $220 level. On the downside, there is a connecting bullish trend line in place with support at $221. A break below the trend line could ignite fresh bearish moves towards $209 and $205 in the near term. On the other hand, if the price moves higher, it could test the $235 and $240 resistances. Above these, the 50% Fib retracement level of the last decline from the $283 swing high to $209 low is at 248.
Looking at the chart, ETH price is currently correcting higher towards $235-240. However, recoveries are likely to face many hurdles and it won’t be easy for buyers to push the price above $240 or $248.
Hourly MACD – The MACD is slowly moving in the bullish zone.
Hourly RSI – The RSI is currently above the 45 level.
Major Support Level – $220
Major Resistance Level – $240
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