Ethereum formed a strong support base above the $224 level against the US Dollar. ETH is up over 3% and it broke the key $230 and $232 resistance levels.

• Ethereum is gaining bullish momentum above the $230 pivot and the 100 hourly simple moving average.
• The price is up more than 3% and it even tested the $235 resistance level.
• There was a break above a major bearish trend line with resistance near $230 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is showing positive signs and it seems like it could continue to rise towards $240 and $250.

Ethereum Price is Surging

In the past few days, Ethereum price formed a strong support base above $224 against the US Dollar. ETH price started a fresh increase and surpassed a couple of important hurdlers near $228 and $230.

The bulls gained strength, resulting in a steady rise above the $230 resistance the 100 hourly simple moving average. More importantly, there was a break above a major bearish trend line with resistance near $230 on the hourly chart of ETH/USD.

The pair even climbed above the $232 resistance and tested the $235 region. It is currently correcting lower and trading near the 23.6% Fib retracement level of the recent upward move from the $223 swing low to $235 high.

Ethereum price rallies 3%. Source: TradingView.com

On the downside, the first major support is near the $230 level (the recent breakout zone) and the trend line. It is close to the 50% Fib retracement level of the recent upward move from the $223 swing low to $235 high.

Once the current correction wave is complete, there are chances of another increase above the $235 resistance zone. In the mentioned case, ether price might continue to rise towards the $245 and $250 resistance levels in the coming sessions.

Another Failure in ETH?

If Ethereum fails to remain stable above the $230 support, there is a risk of a false upside break. A bearish close below the $230 support might spark a fresh decline.

The next major support is near the $224 level, below which the bears are likely to eye a sustained downward move.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently well near the overbought zone.

Major Support Level – $230

Major Resistance Level – $235

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.