Crypto

Ethereum Could Reverse Losses If It Closes Above One Key Level

Ethereum declined heavily after multiple rejections near $250 against the US Dollar. ETH price is now recovering, but it must settle above $240 to start a fresh increase.

  • ETH price is currently correcting higher from the $225 swing low against the US Dollar.
  • It is now trading above the $230 level and the 100 simple moving average (4-hours).
  • Earlier, there was a break below a key ascending channel with support at $244 on the 4-hours chart of ETH/USD (data feed via Kraken).
  • The pair could also move back into a positive zone if it closes above the $240 resistance.

Ethereum Price is Facing Hurdles

This past week, Ethereum failed to settle above the $250 resistance level against the US Dollar. As a result, ETH price started a major decline below the $245 and $240 support levels.

The decline was initiated after there was a break below a key ascending channel with support at $244 on the 4-hours chart of ETH/USD. The pair even broke the $230 support and the 100 simple moving average (4-hours).

Ethereum Price
Ethereum Price

Ether price traded as low as $225 and recently started an upside correction. It broke the $230 and $232 resistance levels. However, the bulls are currently facing hurdles near the $238 level or the 50% Fib retracement level of the recent decline from the $250 high to $225 low.

It seems like there is a crucial hurdle forming near the $238 and $240 levels. The 61.8% Fib retracement level of the recent decline from the $250 high to $225 low is also near $241.

A successful break above the $240 resistance zone is likely to push the price into a positive zone. The next key resistance is near the $250 level, above which the price could surge towards the $265 level.

Fresh Decline in ETH?

On the downside, there is a decent support forming near the $234 level and the 100 simple moving average (4-hours). If Ethereum fails to stay above the $234 support, it could continue to move down below $230.

The main supports are near the $225 and $222 levels, below which ether is likely to accelerate lower towards the $205 and $200 support levels.

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly moving in the bullish zone.

4 hours RSI – The RSI for ETH/USD is currently just below the 50 level.

Major Support Level – $230

Major Resistance Level – $240

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James Donald
James Donald writes for the Crypto section of Select News 91. He is an economic expert with a special interest in the unregulated currency system. He believes that the future of the planet lies in the unregulated system and that cryptocurrency is only beginning its journey. Whether his prediction is true or not, his skills certainly show his ability to analyze trends and dissect policy decisions. His column talks about the various cryptocurrencies failing and succeeding in a market that is nowhere near saturation.

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