ETH has made a massive surge in the past few days and even broke the $210 and $220 resistance levels against the USD. Moreover, the ETH price traded above the $220 level and 100 hourly simple moving average (SMA).
The price recently tested the $230 area, where the bears took a stand. All the attempts made by the bulls to lead the price above the $230 level weren’t successful. Hence, the price started consolidating gains and it is currently making a downside correction from $230.
The price dropped below the $225 level before it found support around $224. It bounced back above the 50% Fib retracement level of the recent downtrend from the $230 high to $224 low. However, ETH is again facing resistances close to the $230 level. Besides, the 76.4% Fib retracement level of the recent downtrend from the $230 high to $224 low is also acting as a resistance.
On the downside, there is this formation of a major bullish trend line, with support near $225, on the ETH/USD hourly chart. Therefore, a break below the trend line might lead to further drop towards the $223 support area. Any further losses may perhaps cause the price to decline towards the $220 support area. The next major support and buying zone is near the $215 level. An intermediate support is also at $218 and the 100 hourly SMA.
Once the current minor correction is over, ETH price is likely to rally above $228 and $230. A clear break above the $230 resistance level could trigger more gains. The main targets for ETH bulls this week are $240 and $250. Another downside correction is possible if the price hits $250.
Technical indicators also suggest that the hourly MACD for the ETH/USD pair is slowly moving into the bearish zone. Its hourly RSI (Relative Strength Index) is currently declining and it is now just below the 50 level. Major support level is at $222, whereas major resistance level is also at $230.
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