Ethereum price is attempting an upward correction from the USD 2,150 support. ETH could gain momentum if it breaks the USD 2,240 resistance zone.
- Ethereum started an upward correction from the $2,165 zone.
- The price is trading below $2,240 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance near $2,235 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady rise if it breaks the $2,240 resistance zone.
Ethereum price holds support
Ethereum price extended its decline below the USD 2,240 support zone. ETH peaked below $2,200 before the bulls appeared near the $2,165 level. The price formed a short-term base and started an upward correction like Bitcoin.
There was a move above the USD 2,200 resistance level. Additionally, there was a break above a connecting bearish trendline with resistance around $2,235 on the hourly chart of ETH/USD. However, the bears are active near the USD 2,240 resistance. They defended the Fib retracement level of 23.6% of the downward move from the $2,480 swing high to the $2,165 low.
Ethereum is now trading below $2,240 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance around the $2,240 level.
The next hurdle could be $2,300 or the 100-hour Simple Moving Average, above which the price could rise and test the 50% Fib retracement level of the downward move from the $2,480 swing high to the $2,165 low at $2,320 . The next major resistance is now near $2,360.
Source: ETHUSD on TradingView.com
A clear move above the USD 2,360 level could trigger a significant upside. In the mentioned case, the price could rise towards the USD 2,420 level. Any further gains could send the price towards the $2,500 zone.
Another drop in ETH?
If Ethereum fails to clear the USD 2,240 resistance, it could trigger another decline. The initial downside support is near the $2,200 level.
The next major support could be the $2,165 zone. A downside break below the USD 2,165 support could trigger another substantial decline. In the said case, Ether could test the USD 2,080 support. Any further losses could send the price towards the USD 2,000 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major support level – $2,165
Major resistance level – $2,240
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