Ethereum is trading a large support of $ 225 against the US dollar. ETH could start a new rally if it abolishes resistance levels of $ 228 and $ 230 in the short term.
- Ethereum is trading above the support levels of $ 224 and $ 225 with a positive trend.
- The price seems to position itself above the USD 228 and USD 230 resistance levels for a pause.
- On the hourly chart of the ETH / USD (data feed about octopuses), a decisive ascending channel is forming with support of around 224 USD.
- The pair may be able to dive if it does not stay above the support levels of $ 224 and $ 222.
The Ethereum Prize holds key support
Recently, the Ethereum price made another attempt to exceed USD 228 and USD 230 resistance levels against the US dollar. The ETH price could not continue to rise and formed a swing high near the $ 230 level.
It corrected below the $ 226 level and the simple moving average of 100 hours. However, it remained well above the USD 222 support. It is currently rising, trading above the 23.6% fib retracement level of the recent drop from the $ 230 swing high to the $ 222 low.
On the upside, initial resistance is close to the $ 226 level and the simple 100-hour moving average. It is close to the 50% fib retracement level of the recent drop from the $ 230 swing high to the $ 222 low.
thereum price trades near $225. Source: TradingView.com
It appears that a crucial ascending channel is forming on the ETH / USD hourly chart with support near $ 224. The first major resistance is near the $ 228 level, followed by the important $ 230 level. A successful close above the USD 230 resistance could trigger a new rally in the ether above the USD 232 and USD 235 levels.
Downward reaction in ETH?
If Ethereum doesn't stay above the $ 224 level and channel support, it can retest the $ 222 support level. Further losses may put the ether bulls under severe pressure.
A bearish break below support levels of $ 222 and $ 220 could potentially pave the way for a sharp decline towards the level of $ 215 and short-term to $ 205.
Hourly MACD – – The MACD for ETH / USD is fighting for an upward dynamic.
Hourly RSI – – The RSI for ETH / USD is currently slipping and is below the 50 level.
Main support level – $ 222
Main resistance level – $ 230
Disclaimer: 76.4% of retail CFD accounts lose money.