Ethereum is trading below the key $235 resistance area against the US Dollar. ETH price seems to be forming a strong support above $220 and it could soon rally above $235.
- Ethereum is likely forming a bottoming pattern above the $220 level against the US Dollar.
- The price could gain bullish momentum once there is a clear break above the $235 resistance.
- There is a major bullish trend line in place with support near $225 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is trading above the $9,000 level and it may soon start another increase.
Ethereum Price Likely Forming Bottoming Pattern
In the past two days, Ethereum remained well bid above the $220 support level against the US Dollar. ETH price settled above the $225 level and the 100 hourly simple moving average.
On the upside, the $235 resistance area is acting as a strong barrier for the bulls. There were more than two attempts already to clear the $235 barrier, but the bulls struggled to gain momentum.
The recent high was near $235 and the price corrected below the $232 level. Ethereum is currently holding the $228 support level and the 100 hourly simple moving average. The 50% Fib retracement level of the upward move from the $220 low to $234 high is also acting as a decent support.
Moreover, there is a major bullish trend line in place with support near $225 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward move from the $220 low to $234 high.
On the upside, the price is facing a strong barrier near the $235 level. A successful break above the $235 resistance area could open the doors for a larger rally. The next major resistance is near the $245 and $250 levels.
Here Are Major Buy Zones
If Ethereum struggles to clear the $235 resistance area, there is a risk of a short term downside correction. The first key support is near the 100 hourly simple moving average and the trend line support at $225.
The main range support is still near the $220 level, below which the bears are likely to aim a larger decline below the $218 and $215 levels. The next major support is near $212, where the bulls are likely to appear.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising and it is above the 50 level.
Major Support Level – $225
Major Resistance Level – $235
