Ethereum (ETH) Price Recovery Underway But Bulls Likely To Struggle
- ETH price started a short term recovery from the $233 swing low against the US Dollar.
- The price broke the $242 resistance, but it is still well below the $252 and $255 resistances.
- There was a break above a major bearish trend line with resistance near $244 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently trading in range and facing many hurdles on the upside near $252 and $255.
Ethereum price is currently recovering above key levels versus the US Dollar and bitcoin. ETH price is likely to struggle to move above the $252 and $255 resistance levels.
Ethereum Price Analysis
After trading as low as $233, Ethereum price started a short term recovery against the US Dollar. The ETH/USD pair traded above the $235 and $240 resistance levels to move into a positive zone. There was a break above the 23.6% Fib retracement level of the downward move from the $270 high to $233 low. The price action is positive above $240, but the price is facing many hurdles on the upside.
Moreover, there was a break above a major bearish trend line with resistance near $244 on the hourly chart of ETH/USD. The price is currently struggling to clear the $248 resistance. Above $248, the next major resistance is near the $252 level and the 100 hourly simple moving average. The 50% Fib retracement level of the downward move from the $270 high to $233 low is also near the $252 level. If there is a clear break above the $252 resistance, the price could attempt to gain pace above the $255 level.
A proper close above the $255 level plus the 61.8% Fib retracement level of the downward move from the $270 high to $233 low is needed for more gains. Conversely, if there is a downside break, an initial support is near the $242 level. If the bulls fail to hold the $242 level, the price is likely to move back towards the $235 level. Any further declines may perhaps increase chances of a downside break below $233.
Looking at the chart, Ethereum price seems to be trading in a range below the $248 and $252 resistance levels. On the downside, the main support are $242 and $235. If the price fails to move above $252 or $255, there is a risk of a downside extension below the $230 level in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone, with a few bearish signs.
Hourly RSI – The RSI for ETH/USD is currently moving lower towards the 50 level.
Major Support Level – $235
Major Resistance Level – $252