Ethereum initiated a negative correction of the resistance zone from $ 248 to $ 250 against the dollar. ETH may extend its decline, but is expected to remain above $ 230, hoping for a further increase.
- Ethereum is correcting lower and trading near the $ 235 support zone.
- The price is now trading below the $ 242 pivot level and the 100-hour simple moving average.
- There was a break below an important uptrend line with support close to $ 245 on the ETH / USD hourly chart (data feed via Kraken).
- The pair is likely to extend its decline toward the $ 230 support, where bulls may appear.
Ethereum price correction gains
This week, there was a steady increase in Ethereum above levels of $ 235 and $ 240 against the dollar. ETH's price even broke the $ 245 resistance level, but faced strong selling interest close to the $ 248 to $ 250 zone.
As a result, there was a negative correction to the $ 248 high. There was a break below the $ 245 and $ 242 levels. The ether price was below the $ 240 level and the 100-hour simple moving average.
There was also a break below the main uptrend line with support close to $ 245 on the hourly ETH / USD chart. The pair tested the $ 235 support level and is currently consolidating losses. Initial resistance is close to the $ 240 level or the 23.6% Fib retracement level of the recent decline, from the $ 249 hike to the $ 235 low.
The $ 240 level is close to the 100-hour simple moving average. The first major resistance is close to the $ 242 level. It is close to the 50% Fib retracement level of the recent decline, from the $ 249 level to the $ 235 level.
To initiate a further increase, the ether price must surpass the $ 240 and $ 242 resistance levels. In the case mentioned, the bulls may make another attempt to eliminate the $ 248 and $ 250 resistance levels.
More losses in ETH?
In contrast, the $ 235 region is likely to act as a strong buying zone. If there is a close below $ 235, the price is likely to extend its decline.
The next big support is close to the $ 230 level, where bulls are likely to position themselves. Any further losses could push the price down and drop to $ 220.
Technical Indicators
Hourly MACD - The MACD for ETH / USD is losing strength in the bearish zone.
Hourly RSI - The RSI for ETH / USD is currently correcting higher to level 40.
Main support level - $ 235
Higher resistance level - $ 242
Take advantage of trading opportunities with Plus500
Risk-free: 76.4% of retail CFD accounts lose money.
