Ethereum Price Technical Analysis – ETH/USD Correcting Lower

Key Highlights

• ETH price after trading as high as $270 found sellers and started correcting lower against the US Dollar.
• There was a break below a rising and contracting triangle pattern at $260 on the hourly chart of ETH/USD (data feed via SimpleFX).
• There pair is currently correcting lower, but downsides remain limited below $250.

Ethereum price is currently correcting its gains against the US Dollar and Bitcoin, but ETH/USD remains supported on the downside near $250.

Ethereum Price Support

The past 2-3 days were good for ETH price as it moved above the $230 level against the US Dollar. It traded higher and broke the $260 resistance to gain pace towards $270. The price traded as high as $270.84 recently before facing offers. Later, a correction wave was initiated, and the price moved below the $265 level. There was a break below a rising and contracting triangle pattern at $260 on the hourly chart of ETH/USD.

The price recently tested the 23.6% Fib retracement level of the last wave from the $218.81 low to $270.84 high. The recent break has opened the doors for a correction may be towards $250. The next major support is around the 38.2% Fib retracement level of the last wave from the $218.81 low to $270.84 high. Buyers are currently protecting a close below the $260 level, which is a positive sign.

It looks like any major downsides are very unlikely below $250 in the short term. On the upside, the $265 level is a resistance zone, followed by $270. The overall trend is positive, and the price may soon resume its uptrend above $265. Buying dips in the short term towards $255-250 can be considered.

Hourly MACD – The MACD is placed well in the bullish zone and showing positive signs.

Hourly RSI – The RSI is currently above the 50 level.

Major Support Level – $250

Major Resistance Level – $270

 

Charts courtesy – SimpleFX

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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