Ethereum surged to a new monthly high at $227 before correcting lower against the US Dollar. ETH price is now testing the $205 support zone and it is likely to start a fresh rally.
Ethereum started a downside correction after a strong rally above $220.
The price is currently trading above the key uptrend supports at $205 and $200.
There is a short term contracting triangle forming with resistance near $210 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to start a fresh increase above $210 as long as it is above $200.
Ethereum Price Correcting Gains
Yesterday, we saw a sharp rise in Ethereum above the $200 hurdle against the US Dollar. ETH surged more than 10% and even climbed above the $220 level and the 100 hourly simple moving average.
It traded to a new monthly high at $227 and recently started a downside correction, similar to bitcoin. There was a break below the $212 and $210 support levels.
Ether price even spiked below the $205 support, but it remained well bid above the $200 support and the 100 hourly simple moving average. It is currently trading above the 23.6% Fib retracement level of the recent decline from the $227 high to $203 swing low.
An initial resistance on the upside is near the $210 level. There is also a short term contracting triangle forming with resistance near $210 on the hourly chart of ETH/USD.
If there is an upside break above the triangle resistance, Ethereum could test the $215 resistance area. The 50% Fib retracement level of the recent decline from the $227 high to $203 swing low is also near $215.
A successful break above the $215 resistance area is must to start a fresh increase and rally above the $220 resistance area in the near term.
Key Uptrend Support
The main uptrend supports on the downside are near $205, $202 and the 100 hourly SMA. If Ethereum fails to stay above the $200 support zone, there is a risk of a larger decline.
In the mentioned bearish case below the $200 support, the price is likely to continue lower towards the $192 and $190 support levels in the coming sessions.
Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently struggling to climb above the 50 level.
Major Support Level – $202
Major Resistance Level – $215