Ethereum started a downside correction from the $248-$250 resistance zone against the US Dollar. ETH could extend its decline, but it must stay above $230 for hopes of a fresh increase.
- Ethereum is correcting lower and trading near the $235 support zone.
- The price is now trading below the $242 pivot level and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $245 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to extend its decline towards the $230 support, where the bulls might appear.
Ethereum Price Correcting Gains
This week, there was a steady increase in Ethereum above the $235 and $240 levels against the US Dollar. ETH price even broke the $245 resistance level, but it faced a strong selling interest near the $248-$250 zone.
As a result, there was a downside correction from the $248 swing high. There was a break below the $245 and $242 levels. Ether price settled below the $240 level and the 100 hourly simple moving average.
There was also a break below a major bullish trend line with support near $245 on the hourly chart of ETH/USD. The pair tested the $235 support level and it is currently consolidating losses. An initial resistance is near the $240 level or the 23.6% Fib retracement level of the recent decline from the $249 swing high to $235 low.
Ethereum price trades below $230. Source: TradingView.com
The $240 level is close to the 100 hourly simple moving average. The first major resistance is near the $242 level. It is close to the 50% Fib retracement level of the recent decline from the $249 swing high to $235 low.
To start a fresh increase, ether price must surpass the $240 and $242 resistance levels. In the mentioned case, the bulls may perhaps make another attempt to clear the $248 and $250 resistance levels.
More Losses in ETH?
On the downside, the $235 region is likely to act as a strong buy zone. If there is a close below $235, the price is likely to extend its decline.
The next major support is near the $230 level, where the bulls are likely to take a stand. Any further losses could push the price into a bearish zone and it might dive towards $220.
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently correcting higher towards the 40 level.
Major Support Level – $235
Major Resistance Level – $242
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