- ETH price dived once again but the $205-200 support zone acted as strong support against the US Dollar.
- Yesterday’s highlighted two bearish trend lines with current resistance at $255-270 on the hourly chart of ETH/USD (data feed via SimpleFX) are preventing gains.
- The price is currently attempting a break above the second trend line at $270-275.
Ethereum price bounced sharply against the US Dollar and Bitcoin, and now ETH/USD is looking to gain momentum to close above $275.
Ethereum Price Bounced Sharply
Yesterday, there was an attempt to move above $260 in ETH price against the US Dollar. However, the price failed to gain momentum and moved back below $240. It failed to break the 50% Fib retracement level of the last decline from the $312 high to $204 low, and moved down. The downside move was such that the last swing low of $204 was tested. The price even broke it for a new minor low of $202. On the positive side, sellers failed to take the price below $202.
As a result, there was a strong bounce and the price moved above $220. There was a close above the 38.2% Fib retracement level of the last decline from the $310 high to $202 low. However, the upside move was prevented by $275 and the 100 hourly simple moving average. Moreover, there was no close above the 61.8% Fib retracement level of the last decline from the $310 high to $202 low. ETH needs to close above the trend lines and the $270 resistance if buyers have to gain momentum.
If they fail once again, there is a chance of a downside move back towards $220. Below it, the price may retest the last swing low at $202.
Hourly MACD – The MACD is back in the bullish zone.
Hourly RSI – The RSI is above the 50 level, but heading lower.
Major Support Level – $220
Major Resistance Level – $270
Charts courtesy – SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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