Ethereum is trading in a positive zone above $240 and $242 against the US Dollar. ETH is likely to climb above the $250 resistance, which might start a strong uptrend.
- Ethereum is rising and it remained well bid above the $240 support level.
- The price is now approaching the main $250 resistance and trading above the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $244 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to accelerate higher once there is a daily close above the $250 resistance.
Ethereum Price Eyeing Crucial Upside Break
In the past few sessions, there was a steady rise above $240 in Ethereum against the US Dollar. ETH price tested the $245 level yesterday before starting a downside correction.
The price corrected a few points, but it remained stable above the $240 level and the 100 hourly simple moving average. A fresh support base was formed and the price started a fresh increase above $240.
More importantly, there was a break above a bullish flag pattern with resistance near $244 on the hourly chart of ETH/USD. It opened the doors for more gains and the price climbed higher above $246. It again tested the $248-$250 resistance zone.
A high is formed near $249 and the price is currently consolidating gains. An initial support is near the $247 level. It is close to the 23.6% Fib retracement level of the recent wave from the $242 swing low to $249 high.
There is also a key bullish trend line forming with support near $244 on the same chart. The trend line coincides with the 50% Fib retracement level of the recent wave from the $242 swing low to $249 high.
On the upside, ether price seems to be eyeing a crucial upside break above the $250 level. It seems like the price is likely to accelerate higher once there is a daily close above the $250 resistance.
Dips Likely to be Limited in ETH
On the downside, the $244 level is a strong support zone. If Ethereum fails to stay above $244, there could be an extended decline in the near term.
The next key support could be $240, below which the price is likely to test the 100 hourly simple moving average in the coming sessions.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level, with a positive bias.
Major Support Level – $244
Major Resistance Level – $250
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.