Ethereum Likely To End Current Consolidation With A Strong Rally

By June 12, 2020Ethereum
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Ethereum is trading in a range above the $240 support region against the US Dollar. ETH price is likely to end the current consolidation and rally above the $250 resistance.

  • Ethereum is still trading in a range above the $240 support and the 100 hourly simple moving average.
  • The price is likely to start a strong increase if it clears the $250 resistance zone.
  • There is a key bearish trend line forming with resistance near $245 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must settle above the $250 resistance zone to start a steady rise.

Ethereum Price Holding Key Supports

Ethereum price traded in a crucial range above the main $240 support zone. ETH revisited the range support at $240 recently and it is currently moving higher.

It seems to be trading nicely above the $242 level and the 100 hourly simple moving average. There was a break above the 50% Fib retracement level of the recent decline from the $248 swing high to $240 low.

However, the $245 level is currently acting as a resistance. There is also a key bearish trend line forming with resistance near $245 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the recent decline from the $248 swing high to $240 low.

Ethereum Price
Ethereum Price

If there is an upside break above the trend line, ether price could make another attempt to clear the $248 and $250 resistance levels. A successful close above the $250 resistance is needed for a sustained upward move.

In the mentioned bullish case, there are chances of a sharp 8% to 15% rise towards the $265 and $280 levels in the near term.

Bearish Break in ETH

On the downside, there is a key breakdown support forming near the $240 level and the 100 hourly simple moving average. If Ethereum settles below the $240 level, there is a risk of a sharp decline.

An initial support after the breakdown could be near the $230 level, below which the bears are likely to aim a test of the $220 level. Any further losses could lead the price towards the $205 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently just above the 50 level.

Major Support Level – $240

Major Resistance Level – $250

Risk disclaimer: 76.4% of retail CFD accounts lose money.

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