Ethereum Defies Gravity But It Must Clear 100 SMA To Continue Higher

Ethereum found support near $218 and started a sharp recovery wave against the US Dollar. ETH price is now facing hurdles near the $234 level and the 100 hourly SMA.

• Ethereum is up around 4% and it recovered nicely above $225 and $230.
• The price is currently struggling to gain pace above $234 and the 100 hourly simple moving average.
• There is a short-term ascending channel forming with support near $230 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to rise further if it clears the $234 and $235 resistance levels.

Ethereum Price Recovers Sharply

Yesterday, there was a downside extension in Ethereum price below the $225 and $220 levels against the US Dollar. ETH traded to a new weekly low at $218 and recently started a strong recovery wave.

There was a break above the $220 and $225 levels. The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $238 swing high to $218 low.

Ether even surpassed a key bearish trend line with resistance near $230 on the hourly chart of ETH/USD. However, the price is currently facing a strong resistance near the $234 level and the 100 hourly simple moving average.

Ethereum Price Recovers 5%.Source: TradingView.com

The 76.4% Fib retracement level of the downward move from the $238 swing high to $218 low is also acting as a resistance. If ETH gains pace above the $234 and $235 resistance levels, it is likely to continue higher towards $240 and $245. Any further gains could lead the price towards the main $250 resistance in the near term.

Fresh Decline in ETH?

Ethereum is clearly facing a strong resistance near the $234 level and the 100 hourly SMA. If it fails to continue above the $234 zone, there is a risk of a fresh decline.

It seems like there is a short-term ascending channel forming with support near $230 on the same chart. A downside break below the channel support might increase selling pressure and the price might drop to $220 in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with positive signs.

Major Support Level – $225

Major Resistance Level – $234

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Via https://www.newsbtc.com/2020/06/16/ethereum-eth-must-clear-100-sma-to-continue-higher/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-eth-must-clear-100-sma-to-continue-higher