• ETH price rebounded nicely and traded above the $240 and $250 resistances against the US Dollar.
• The price tested the $265 level and it is currently correcting lower towards the $240 support.
• There is a key bullish trend line forming with support near $240 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to find a strong buying interest near $240 and the 100 hourly simple moving average.

Ethereum price remains in a strong uptrend above $240 versus the US Dollar, but consolidating vs bitcoin. ETH is currently correcting lower, but dips remains supported near $240.

Ethereum Price Analysis

After forming a decent support base, Ethereum price rebounded nicely and traded above the $240 and $250 resistances against the US Dollar. The ETH/USD pair even cleared the $260 level and settled well above the 100 hourly simple moving average. A swing high was formed near $265 and recently the price started a downside correction. It declined below the $260 level and the 23.6% Fib retracement level of the recent leg from the $232 low to $265 high.

It even traded below $255 and it is currently tested the $248-250 support area. The 50% Fib retracement level of the recent leg from the $232 low to $265 high is also acting as a support. To the downside, there is a strong support forming near the $240 level. Besides, there is also a key bullish trend line forming with support near $240 on the hourly chart of ETH/USD. The trend line coincides with the 76.4% Fib retracement level of the recent leg from the $232 low to $265 high. Therefore, as long as the price is above the $240 support, it is likely to bounce back.

More importantly, the 100 hourly simple moving average is near the trend line and the $240 support. If there is a downside break below the $240 support, the price could retest the $232 support area. On the upside, an initial resistance is near $257-258. If there is an upside break above $260, there are high chances of a fresh high above the $265 level in the near term.

-

Looking at the chart, Ethereum price is currently correcting lower towards a few important supports near $240. The bulls are likely to remain active as long as the price is above $240 and the 100 hourly SMA. On the upside, a clear break above $257 and $260 might push the price towards $280.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.

Hourly RSI – The RSI for ETH/USD moved down below 40 and it is currently heading towards the 40 level.

Major Support Level – $240

Major Resistance Level – $260

Ethereum (ETH) Price Correcting Gains: Key Buy Zones Nearby on NewsBTC.