Ethereum reversed losses and climbed back from the $230 support zone.
The price is now trading comfortably above the $240 pivot level, with a positive bias.
There is a rising channel forming with support near $242 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to rise as long as it is above the $242 and $240 support levels.
Ethereum Price Resumes Uptrend
Yesterday, we saw a sharp decline in Ethereum price below the $240 support. ETH price even spiked below the $230 support and the 100 hourly simple moving average.
Finally, it found support near $220 and recently started a fresh increase. There was a break above the $230 and $235 levels. Ether even managed to reclaim the $240 resistance and settled nicely above the 100 hourly simple moving average.
It traded as high as $246 and it is currently consolidating gains. An initial support is near the $242 level. The 23.6% Fib retracement level of the recent rise from the $218 swing low to $246 high is also near the $240 support.
More importantly, it seems like there is a rising channel forming with support near $242 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $250 level and the channel upper trend line.
Ethereum Price
If the price clears the $250 resistance, it is likely to continue higher towards the $255 level. Any further gains might call for a test of the $262 level or even $268.
Fresh Decrease in ETH?
If Ethereum fails to stay above the $242 and $240 support levels, it could start a fresh decline. The next major support is seen near the $232 level or the 50% Fib retracement level of the recent rise from the $218 swing low to $246 high.
A downside break below the $232 and $230 support levels could accelerate decline and the price may perhaps revisit the $218 swing low.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a positive bias.
Major Support Level – $240
Major Resistance Level – $250
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