Ethereum (ETH) Price Forms Bottom: Break $300 Could Accelerate Gains (Newsbtc)
ETH price declined to a new monthly at $271 and recently recovered against the US Dollar.
There was a sharp increase above the $280 and $290 resistance levels in the past two sessions.
There was a break above a major bearish trend line with resistance near $286 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is currently trading near the $300 resistance, above which it could accelerate higher.
Ethereum price is reversing recent losses versus the US Dollar, similar to bitcoin. ETH price must clear the $300 resistance level to continue higher in the near term.
Ethereum Price Analysis
In the past two sessions, there was a strong recovery in bitcoin and Ethereum against the US Dollar. Earlier, the ETH/USD pair declined to a new monthly low at $271 before it started a strong upward move. The bulls took control after the price broke the $275 and $280 resistance levels. Moreover, there was a break above the 23.6% Fib retracement level of the downward move from the $323 high to $271 low.
Besides, there was a break above a major bearish trend line with resistance near $286 on the hourly chart of ETH/USD. The pair even settled above the $290 level and the 100 hourly simple moving average. It is now trading near the key $298-300 resistance zone, which is acting as a barrier. Moreover, the 50% Fib retracement level of the downward move from the $323 high to $271 low is protecting gains.
If there is a successful break above the $300 barrier, the price could recover further. An immediate resistance is near the $310 level. The 76% Fib retracement level of the downward move from the $323 high to $271 low near $311 might also act as a resistance. If the price continues higher, it could soon revisit the last swing high near the $323 level.
On the downside, the recent resistances near the $292 and $290 levels may perhaps act as a support. The next major support is near the $282 level, below which the price could move back in a bearish zone.
Looking at the chart, Ethereum price is clearly recovering nicely above the $290 resistance level. However, a successful close above the $300 and $302 levels is needed for more gains. Once the price settles above $300, it will mostly likely continue to rise towards the $310 and $325 levels in the near term.
ETH Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level, with a positive angle.
Major Support Level – $292
Major Resistance Level – $300
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