Ethereum Flirts With Key Resistance: Here’s Why It Could Correct Before Fresh Rise

Ethereum price extended its rise above the $220 resistance area against the US Dollar. ETH is currently facing hurdles near $230 and it could correct in the short term.

  • Ethereum is facing a key resistance near the $230 area against the US Dollar.
  • The price might correct a few points towards $223 or $220 before climbing again.
  • There is a major bullish trend line forming with support near $225 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin price is now trading well above the key $10,000 resistance area.

Ethereum Price Could Correct In Short Term

In the past few days, Ethereum followed a strong uptrend and broke the $210 and $220 resistance levels against the US Dollar. ETH price even settled above the $220 level and 100 hourly simple moving average.

Recently, the price tagged the $230 area, where the bears took a stand. The bulls made two attempts to lead the price above the $230 level, but they failed.

As a result, the price started consolidating gains and it is currently correcting lower from $230. The price dipped below the $225 level before it found support near $224. It bounced back above the 50% Fib retracement level of the recent decline from the $230 high to $224 low.

However, Ethereum is again facing hurdles near the $230 level. Besides, the 76.4% Fib retracement level of the recent decline from the $230 high to $224 low is also acting as a resistance.

On the downside, there is a major bullish trend line forming with support near $225 on the hourly chart of ETH/USD. Therefore, a break below the trend line might push the price towards the $223 support area.

Ethereum Price

Ethereum Price

Any further losses may perhaps lead the price towards the $220 support area. The next major support is near the $215 level. An intermediate support is $218 and the 100 hourly simple moving average.

Fresh Increase?

Once the current consolidation phase or a minor correction is complete, Ethereum price is likely to bounce back above $228 and $230.

A clear break above the $230 resistance level could open the doors for more gains. The main targets this week are $240 and $250. If the price hits $250, there are chances of another downside correction.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently declining and it is now just below the 50 level.

Major Support Level – $222

Major Resistance Level – $230

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Source: Newsbtc

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