This Scenario Will Trigger A New Ethereum Rally: Key Levels To Watch
Ethereum is trading above a major support at $225 against the US Dollar. ETH could start a fresh rally if it clears the $228 and $230 resistance levels in the near term.
- Ethereum is trading with a positive bias above the $224 and $225 support levels.
- The price seems to be positioning for a break above the $228 and $230 resistance levels.
- There is a decisive ascending channel forming with support near $224 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may perhaps dive if it fails to stay above the $224 and $222 support levels.
Ethereum Price is Holding Key Support
Recently, Ethereum price made another attempt to surpass the $228 and $230 resistance levels against the US Dollar. ETH price failed to continue higher and formed a swing high near the $230 level.
It corrected lower below the $226 level and the 100 hourly simple moving average. However, it remained well bid above the $222 support. It is currently rising and trading above the 23.6% Fib retracement level of the recent decline from the $230 swing high to $222 low.
On the upside, an initial resistance is near the $226 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $230 swing high to $222 low.
thereum price trades near $225. Source: TradingView.com
It seems like there is a decisive ascending channel forming with support near $224 on the hourly chart of ETH/USD. The first major resistance is near the $228 level, followed by the all-important $230 level. A successful close above the $230 resistance could trigger a fresh rally in ether above the $232 and $235 levels.
Downside Reaction in ETH?
If Ethereum fails to stay above the $224 level and the channel support, it could retest the $222 support level. Any further losses may perhaps put a lot of pressure on ether bulls.
A bearish break below the $222 and $220 support levels may perhaps clear the path for a strong decline towards the $215 level and then to $205 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is struggling to gain bullish momentum.
Hourly RSI – The RSI for ETH/USD is currently sliding and it is below the 50 level.
Major Support Level – $222
Major Resistance Level – $230
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Aayush Jindal, Khareem Sudlow
