Ethereum price bounced sharply against the US Dollar and Bitcoin, and now ETH/USD is looking to gain momentum to close above $275.
- ETH price dived once again but the $205-200 support zone acted as strong support against the US Dollar.
- Yesterday’s highlighted two bearish trend lines with current resistance at $255-270 on the hourly chart of ETH/USD (data feed via SimpleFX) are preventing gains.
- The price is currently attempting a break above the second trend line at $270-275.
Ethereum Price Bounced Sharply
Yesterday, there was an attempt to move above $260 in ETH price against the US Dollar. However, the price failed to gain momentum and moved back below $240. It failed to break the 50% Fib retracement level of the last decline from the $312 high to $204 low and moved down. The downside move was such that the last swing low of $204 was tested. The price even broke it for a new minor low of $202. On the positive side, sellers failed to take the price below $202.
As a result, there was a strong bounce and the price moved above $220. There was a close above the 38.2% Fib retracement level of the last decline from the $310 high to $202 low. However, the upside move was prevented by $275 and the 100 hourly simple moving average. Moreover, there was no close above the 61.8% Fib retracement level of the last decline from the $310 high to $202 low. ETH needs to close above the trend lines and the $270 resistance if buyers have to gain momentum.
If they fail once again, there is a chance of a downside move back towards $220. Below it, the price may retest the last swing low at $202.
Hourly MACD – The MACD is back in the bullish zone.
Hourly RSI – The RSI is above the 50 level, but heading lower.
Major Support Level – $220
Major Resistance Level – $270
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Charts courtesy of SimpleFX