Ethereum Could Narrowly Avoid Another Decline If It Closes Above $230

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Ethereum is slowly recovering and trading above the $225 level against the US Dollar. ETH is likely to rise sharply if it clears the $228 and $230 resistance levels.

  • Ethereum is showing positive signs above the $224 and $225 support levels.
  • The price is still struggling to clear the $228 and $230 resistance levels.
  • There is a crucial ascending channel forming with support near $224 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could either rally above $230 or it might decline below the channel support to start another decline.

Ethereum Price is Rising Steadily

In the past few sessions, Ethereum price started a steady rise above the $220 level against the US Dollar. ETH price managed to recover above the $225 resistance level and the 100 hourly simple moving average.

However, the price failed to gain momentum above the $228 and $230 resistance levels. A high is formed near $230 and ether is currently correcting lower. It traded below the $228 level and the 100 hourly SMA.

An immediate support could be $225 since it is close to the 50% Fib retracement level of the recent wave from the $221 low to $230 high. There is also a crucial ascending channel forming with support near $224 on the hourly chart of ETH/USD.

Ethereum Price

Ethereum price trades below $230. Source: TradingView.com

The channel support is close to the 61.8% Fib retracement level of the recent wave from the $221 low to $230 high. On the upside, the price is clearly struggling to clear the $228 and $230 resistance levels.

If ether price settles above the $230 resistance level, there are high chances of a sustained upward move. The next major resistance is near the $235 level, above which it could revisit the $250 resistance.

Downside Break in ETH?

If Ethereum fails to clear the $228 and $230 resistance levels, it is likely to start a fresh drop. The channel support is near the $224 level, below which the price might gain traction below $222.

A downside break below the $222 and $220 support levels may perhaps open the doors for another decline towards the $215 level. The next key support is near the $205 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently above the 50 level, with a positive bias.

Major Support Level – $224

Major Resistance Level – $230

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