Ethereum (ETH) Price In Corrective Decrease: $230 Support Holds Key
- ETH price climbed further higher and tested $280 before correcting lower against the US Dollar.
- The price started a downside correction and traded below the $270 and $260 supports.
- There is a major bullish trend line forming with support near $252 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $230 support area to avoid an extended downside correction.
Ethereum price climbed towards the $280 level before correcting lower versus the US Dollar and bitcoin. ETH is likely to find support near the $250, $244 and $240 levels in the near term.
Ethereum Price Analysis
After testing the $240 support, Ethereum price started a fresh increase above $260 against the US Dollar. The ETH/USD pair broke the $270 and $275 resistance levels. It traded to a new 2019 high close to the $280 level and recently started a downside correction. There was a break below the $265 and $260 support levels. It seems like the price is struggling to stay above the $270 and $275 levels. Sellers pushed the price below the 50% Fib retracement level of the recent wave from the $240 low to $280 swing high.
The price even broke the $260 support area and spiked below the 61.8% Fib retracement level of the recent wave from the $240 low to $280 swing high. However, the $250-252 support area is currently acting as a strong barrier for sellers. Moreover, there is a major bullish trend line forming with support near $252 on the hourly chart of ETH/USD. Therefore, the pair is likely to find strong bids near the $250 support area. If there is a downside break, the next key support is near the $240 level, where bulls are likely to protect losses.
The next key support below the $240 level is near $231. It coincides with the 1.236 Fib extension level of the recent wave from the $240 low to $280 swing high. More importantly, the 100 hourly simple moving average is also positioned near the $230 zone. Therefore, a break below the $230 level could trigger a nasty downside correction towards $210 or $200.
Looking at the chart, Ethereum price seems to be correcting gains from the $200 swing low. It might continue to struggle, but it is likely to bounce back from $240 or $230. On the upside, a proper close above the $270 barrier is needed for a fresh increase in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD slowly moved down and it is currently just below the 50 level.
Major Support Level – $240
Major Resistance Level – $270