Ethereum Topside Bias Vulnerable Unless ETH Surges Past $240

Ethereum seems to be consolidating above the $232 and $230 support levels against the US Dollar. ETH price must break the $238 and $240 resistance levels to start a fresh increase.

  • Ethereum is currently stuck in a range and trading near the 100 hourly simple moving average.
  • The price must stay above the $232 and $230 support levels to avoid a bearish reaction.
  • There is a major ascending channel forming with support near $232 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to start a strong increase if there is a clear break above the main $238 resistance.

Ethereum Price is Facing Hurdles

After trading as low as $218, Ethereum price started a fresh increase against the US Dollar. ETH broke the $220 and $225 levels to start a decent recovery. The bulls pushed the price above the $230 level, but they faced sellers near $236.

A high is formed near $236 and the price is currently consolidating gains. It corrected below the 23.6% Fib retracement level of the recent wave from the $218 low to $236 high. It seems like ether is currently stuck in a range and trading near the 100 hourly simple moving average.

There is also a major ascending channel forming with support near $232 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent wave from the $218 low to $236 high is also just below the channel support.

Ethereum Price
Ethereum Price Chart. Source: TradingView.com

The first hurdle on the upside is near the $236 level, but the main hurdle for the bulls is still near the $238 level. To move into a positive zone and start a fresh increase, the bulls need to clear the $238 and $240 resistance levels. In the mentioned case, the price could easily rise towards the $250 and $255 levels.

Another Drop in ETH?

Ethereum is still facing a major hurdle near the $238 zone. If the bulls fail to clear the $238 resistance, there are chances of a fresh decline in the near term.

The main supports are near the $232 and $230 levels, below which the price could start a major decline towards the $220 level. An intermediate support might be near $225 or $224.

Technical Indicators

Hourly MACD The MACD for ETH/USD is about to move into the bullish zone.

Hourly RSI The RSI for ETH/USD is now well above the 50 level, with a bullish angle.

Major Support Level – $230

Major Resistance Level – $238

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