Ethereum is currently recovering from the $216 swing low against the US Dollar. ETH is now facing an uphill task near $228-$230, and it could resume its slide.
- Ethereum is currently trading above the $220 and $222 resistance levels.
- The price is now facing a crucial resistance near the $228 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $226 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline if it fails to clear the $226 and $228 resistance levels.
Ethereum Price is Near Crucial Juncture
After a strong decline below $225, Ethereum found support near the $215 region against the US Dollar. ETH price traded as low as $216 and recently started an upside correction above the $220 level.
The price was able to climb above the $220 and $222 resistance levels. However, ether seems to be facing a crucial resistance near the $228 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $226 on the hourly chart of ETH/USD.
The pair is currently consolidating near the 23.6% Fib retracement level of the recent move from the $216 swing low to $228 high. An initial support is near the $222 level (the recent breakout zone).
Ethereum price testing $225: Source: TradingView.com
The 50% Fib retracement level of the recent move from the $216 swing low to $228 high is also near $222. On the upside, the price is clearly facing a major hurdle near the $228 and $230 levels. To move into a positive zone, the bulls need to clear the $230 resistance and settle above the 100 hourly simple moving average.
Fresh Decline in ETH?
If Ethereum fails to clear the $228 and $230 resistance levels, it is likely to resume its decline. The $222 support might prevent the decline in the short term.
A successful break below the $222 support zone will most likely start a fresh decline. In the mentioned case, the price could revisit the $215 support region in the coming sessions.
Hourly MACD – The MACD for ETH/USD is about to move into the bearish zone.
Hourly RSI – The RSI for ETH/USD is just above the 50 level, with a bearish angle.
Major Support Level – $222
Major Resistance Level – $230
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.