Ethereum gained traction above the $245 resistance, but it struggled to clear the $250 resistance against the US Dollar. ETH price is likely to find support near $245 and it could rally again.
Ethereum Price Showing Positive Signs
After trading in a range for many sessions, Ethereum price spiked above the $244 and $1245 resistance levels. ETH formed a strong support base above $240 and the 100 hourly simple moving average before starting the recent rise.
During the rise, there was a break above a key contracting triangle with resistance near $243 on the hourly chart of ETH/USD. The pair tested the $250 resistance zone, where the bulls lost momentum and sellers prevented more gains.
Ether price is currently correcting lower and trading below the $248 level. There was a spike below the 50% Fib retracement level of the recent rise from the $242 low to $250 high.
The previous key resistance near the $245 level is currently acting as a strong support. The 61.8% Fib retracement level of the recent rise from the $242 low to $250 high is also acting as a strong support.
On the upside, the $250 level seems to the next major hurdle for the bulls. A successful daily close above the $250 level is needed for more gains. The next key resistance could be near the $265 level.
False Break in ETH?
The $245 level is an initial support for Ethereum. The main support is now forming near the $244 level and the 100 hourly simple moving average.
If the price fails to stay above the 100 hourly simple moving average, there are high chances of a sharp decline below the $240 support. In the stated case, the price might dive towards $230 or even $225.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – $244
Major Resistance Level – $250
Risk disclaimer: 76.4% of retail CFD accounts lose money.
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