Key Highlights
- ETH price after a decline towards $274 against the US Dollar found support and recovered well.
- There is a crucial bearish trend line forming with resistance at $305 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
- The pair has to break the $305 resistance and settle above the 100 SMA (H4) to challenge $340.
Ethereum price is back in the positive zone against the US Dollar and Bitcoin. However, ETH/USD needs to gain momentum above $305 and $310 for more gains.
Ethereum Price Resistance
This past week, we saw a couple of swing moves in ETH price towards $274 against the US Dollar. The price tested a major support area at $274 and started an upside move. The recovery was solid as the price moved above $300 and the 100 simple moving average (H4). However, the upside move was capped by the $305.50 resistance. There is also a crucial bearish trend line forming with resistance at $305 on the 4-hours chart of ETH/USD.
The trend line resistance prevented gains and pushed the price back below $300 and 100 SMA (H4). The price is currently trading near the 23.6% Fib retracement level of the last wave from the $274.65 low to $305.22 high. There is a decent support at $289.00 and the 50% Fib retracement level of the last wave from the $274.65 low to $305.22 high. It must hold losses below $288 in the short term or there is a risk of a downside move towards $280.
On the upside, buyers need to break the trend line resistance and $305 for more gains. The next resistance is at $310 followed by the $325. The most important resistance is at $340 where sellers would appear.
4-hours MACD – The MACD is about to move back in the bullish zone.
4-hours RSI – The RSI is currently just above the 50 level.
Major Support Level – $289
Major Resistance Level – $305
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.
Published by
