Key Factors Suggest Ether at Major Breakout Point: $240 Presents Challenge
Ethereum’s Ether is recovering and trading above the $235 resistance against the US Dollar. ETH seems to be preparing for a crucial upside break above $238 and $240.
- Ether is recovering from the $232 support and trading above $235.
- The price is now approaching the main $238 and $240 resistance levels.
- There is a major bearish trend line forming with resistance near $238 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if it clears the $238 and $240 resistance levels.
Ether Price Approaching Next Break
After another rejection near $240, Ether price corrected lower against the US Dollar. ETH traded below the $236 support level, but it remained well bid above the $232 level.
A low was formed near $234 and the price recently corrected higher. It broke the $235 and $236 resistance levels. There was a break above the 50% Fib retracement level of the recent drop from the $240 swing high to $234 low.
The price is now trading above the $237 level and the 100 hourly simple moving average. However, it is now facing hurdles near the $238 level. There is also a major bearish trend line forming with resistance near $238 on the hourly chart of ETH/USD.
Ethereum's Ether testing $238. Source: TradingView.com
The 76.4% Fib retracement level of the recent drop from the $240 swing high to $234 low is also close to the $238 level. If the bulls gain strength above the trend line and $238, there are chances of a steady rise towards $240 and $242. Any further gains could open the doors for a strong rally towards the $250 and $252 levels.
Fresh Decline in ETH?
On the downside, there is a major support forming near the $236 level and the 100 hourly simple moving average. The next major support is near the $234 level and a connecting bullish trend line.
If Ether fails to stay above the $234-$235 support zone, there is a risk of a sharp decline. The next major support is near the weekly pivot level at $230, followed by $228.
Hourly MACD – The MACD for ETH/USD is now gaining strength in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising and it is well above the 50 level.
Major Support Level – $235
Major Resistance Level – $240
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