Ethereum is still trading in a range above the $240 support and the 100 hourly simple moving average.
The price is likely to start a strong increase if it clears the $250 resistance zone.
There is a key bearish trend line forming with resistance near $245 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must settle above the $250 resistance zone to start a steady rise.
Ethereum Price Holding Key Supports
Ethereum price traded in a crucial range above the main $240 support zone. ETH revisited the range support at $240 recently and it is currently moving higher.
It seems to be trading nicely above the $242 level and the 100 hourly simple moving average. There was a break above the 50% Fib retracement level of the recent decline from the $248 swing high to $240 low.
However, the $245 level is currently acting as a resistance. There is also a key bearish trend line forming with resistance near $245 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the recent decline from the $248 swing high to $240 low.
Ethereum Price
If there is an upside break above the trend line, ether price could make another attempt to clear the $248 and $250 resistance levels. A successful close above the $250 resistance is needed for a sustained upward move.
In the mentioned bullish case, there are chances of a sharp 8% to 15% rise towards the $265 and $280 levels in the near term.
Bearish Break in ETH
On the downside, there is a key breakdown support forming near the $240 level and the 100 hourly simple moving average. If Ethereum settles below the $240 level, there is a risk of a sharp decline.
An initial support after the breakdown could be near the $230 level, below which the bears are likely to aim a test of the $220 level. Any further losses could lead the price towards the $205 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently just above the 50 level.
Major Support Level – $240
Major Resistance Level – $250
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