Ethereum Price is Holding Key Support
Recently, Ethereum price made another attempt to surpass the $228 and $230 resistance levels against the US Dollar. ETH price failed to continue higher and formed a swing high near the $230 level.
It corrected lower below the $226 level and the 100 hourly simple moving average. However, it remained well bid above the $222 support. It is currently rising and trading above the 23.6% Fib retracement level of the recent decline from the $230 swing high to $222 low.
On the upside, an initial resistance is near the $226 level and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent decline from the $230 swing high to $222 low.
It seems like there is a decisive ascending channel forming with support near $224 on the hourly chart of ETH/USD. The first major resistance is near the $228 level, followed by the all-important $230 level. A successful close above the $230 resistance could trigger a fresh rally in ether above the $232 and $235 levels.
Downside Reaction in ETH?
If Ethereum fails to stay above the $224 level and the channel support, it could retest the $222 support level. Any further losses may perhaps put a lot of pressure on ether bulls.
A bearish break below the $222 and $220 support levels may perhaps clear the path for a strong decline towards the $215 level and then to $205 in the near term. Read More