Ethereum gained bullish momentum above the $240 resistance against the US Dollar. ETH price is currently correcting gains, but it is likely to resume its upside above $245.

• Ethereum settled above the $235 resistance and it climbed above the $242 resistance.
• The price traded as high as $247 and it is currently correcting lower.
• There was a break below a short-term bullish trend line with support near $245 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 Turns Green

Yesterday, Ethereum saw a strong rise in buying interest above $235 against the US Dollar. ETH price settled above the $235 resistance and it climbed above the $242 resistance.

The price traded as high as $247 and settled above the 100 hourly simple moving average. Recently, it started a downside correction below the $245 level. There was also a break below a short-term bullish trend line with support near $245 on the hourly chart of ETH/USD.

The pair is now testing the 23.6% Fib retracement level of the upward move from the $234 swing low $247 high. An immediate support is near the $242 level (the recent breakout zone).

Ethereum price trades above $242. Source: TradingView.com

If ether price breaks the $242 support, it could extend its correction towards the $240 support. The 50% Fib retracement level of the upward move from the $234 swing low $247 high is also near the $240 support zone along with the 100 hourly simple moving average.

On the upside, the price is facing a couple of short-term hurdles near $245 and $248. The main hurdle is near the $250 level, above which ether is likely to accelerate higher towards the $258 and $262 levels.

Bearish Move in ETH?

On the downside, there is a crucial support forming near the $240 level and the 100 hourly simple moving average. A close below the $240 support might push the price back into a bearish zone.

The next major support is near the weekly pivot level at $235, below which the price is likely to accelerate lower towards the $230 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.

Major Support Level – $240

Major Resistance Level – $248

Take advantage of the trading opportunities with Plus500

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