Ethereum (ETH) Price In Corrective Decrease: $260 Support Holds Key
- ETH price started a downside correction after it failed to clear $275 against the US Dollar.
- The price declined below the $265 support level, but it is holding the $260 and $262 supports.
- Recently, there was a break above a declining channel with resistance at $264 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to climb higher again as long as it is trading above the $260 support area.
Ethereum price is showing signs of a correction versus the US Dollar, and remains bearish vs bitcoin. ETH price is likely to bounce back once the current correction is complete.
Ethereum Price Analysis
After struggling to surpass the $275 resistance, Ethereum price started a downside correction against the US Dollar. The ETH/USD pair traded below the $270 and $265 support levels. There was also a close below the $270 level and the 100 hourly simple moving average. Moreover, the price traded below a major bullish trend line with support near $270 on the hourly chart.
It opened the doors for more losses, but the $262 and $260 support levels remained intact. A swing low was formed near $261 and the price is currently moving higher. It surpassed the 23.6% Fib retracement level of the recent decline from the $275 high to $261 low. Moreover, there was a break above a declining channel with resistance at $264 on the hourly chart of ETH/USD.
The pair is currently testing the $266 level and the 100 hourly simple moving average. If there is a successful break above the 100 hourly simple moving average, the price could rise towards the $270 resistance. An intermediate resistance is near the 50% Fib retracement level of the recent decline from the $275 high to $261 low. A successful close above the $268 and $270 levels is likely to start a fresh increase in the near term.
On the downside, an immediate support is near the $264 level. However, the main supports are $262 and $260. If there is a close below the $260 support, the price is likely to decline further.
Looking at the chart, Ethereum price remains in a positive zone as long as it is above $260. If it fails to hold the $260 support, there could be a downside extension below the $258 and $255 supports. On the upside, the key hurdles are near $270, $275 and $280.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving back in the bullish zone, with positive signs.
Hourly RSI – The RSI for ETH/USD is still below the 50 level, with a flat structure.
Major Support Level – $260
Major Resistance Level – $270