Ethereum is trading in a tight range above the $240 support against the US Dollar. ETH price likely to accelerate higher above the $245 and $250 resistance levels in the near term.
- Ethereum is trading above a major support and pivot area at $240.
- The price is likely to surge if it clears the $245 resistance and the $250 barrier.
- There is a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could either rally above the $245 level or it might start a strong decrease below $240.
Ethereum Price Approaching Crucial Break
After testing the $230 support zone, Ethereum price started a fresh increase. ETH settled nicely above the $240 level and the 100 hourly simple moving average.
The recent high was formed near $246 before the price declined below $242. However, dips were protected and the price seems to be trading in a tight range above the $240 support.
It recovered above the 50% Fib retracement level of the recent decline from the $246 high to $239 low. On the upside, there is a major resistance forming near the $244 and $245 levels. There is also a major contracting triangle forming with resistance near $244 on the hourly of ETH/USD.
The 76.4% Fib retracement level of the recent decline from the $246 high to $239 low is also acting as a resistance. If ether price breaks the triangle resistance and $245, it could start a strong increase.
An initial barrier is near the $250 level, above which the bulls are likely to aim a steady rise above the $255 and $260 levels in the near term.
Bearish Break in ETH?
If Ethereum fails to break the triangle resistance, it could start a fresh decline below the $242 support. The main support is now near the $240 level and the 100 hourly simple moving average.
A successful daily close below the $240 support zone could open the doors for a larger decline. In the stated case, the price might accelerate lower towards the $230 and $225 levels in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling to stay above the 50 level.
Major Support Level – $240
Major Resistance Level – $245
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