Key Highlights
- ETH price after trading as low as $199.74 against the US Dollar found support and recovered above $250.
- There are two bearish trend lines waiting on the upside at $274-280 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair is likely to correct lower once again towards $230 before making an upside attempt.
Ethereum price recovered well against the US Dollar and Bitcoin. However, upsides remain capped in ETH/USD near $275 and $280.
Ethereum Price Resistance
This past week due to all Chinese drama, we saw a major decline in ETH price below the $250 level against the US Dollar. The price even traded below the $200 handle to form a low at $199.74. Later, the price started correcting higher, and made an upside move above $225. It corrected above the 38.2% Fib retracement level of the last decline from $315.15 high to $199.74 low.
However, the upside move was protected by the $270 region. The 61.8% Fib retracement level of the last decline from $315.15 high to $199.74 low acted as a crucial resistance. On the upside, there are two bearish trend lines waiting at $274-280 on the 4-hours chart of ETH/USD to act as a hurdle. It looks like a break and close above $280 won’t be easy considering resistances on the upside. Furthermore, the 100 simple moving average (H4) is sitting near the $308 level to stop any major gains.
A proper close above the 100 simple moving average (H4) and $310 is needed for the pair to be back in the bullish zone. In the short term, there can be a minor correction back towards $230. Any further downsides could take the pair towards $215 in the near term.
4-hours MACD – The MACD is slowly decreasing the bearish zone.
4-hours RSI – The RSI is still below the 50 level.
Major Support Level – $225
Major Resistance Level – $280
Charts courtesy – SimpleFX
