Ethereum price corrected lower and tested the $208.00 support. ETH/USD is likely positioned for the next upside break above the $212.00 resistance.
- Ethereum price is placed nicely above the $207.00-208.00 support zone.
- ETH/USD is about to break a major bearish trend line at $210.10 on the 30-minute chart.
- The price could rally above the $212.00 and $214.00 levels in the near term.
Ethereum Price Analysis
Yesterday, Ethereum price started a downside correction after rallying towards the $220.00 level. The price declined below the $214.00 and $210.00 support levels, but it remained well bid above $205.00.
Click to Enlarge Chart
Looking at the 30-minute chart of ETH/USD, the pair traded as high as $218.98 and later corrected below the $210.00 level and the 25 simple moving average (30-min). Sellers pushed the price below the 50% Fib retracement level of the last leg from the $201.26 low to $218.98 high.
However, there was a strong buying interest around the $207.00-208.00 zone. Moreover, the 61.8% Fib retracement level of the last leg from the $201.26 low to $218.98 high prevented further slides.
As a result, a base was formed near $208.00 and the price started a fresh upward move. It recently moved above the $209.00 level and the 25 simple moving average (30-min).
At the outset, the price is about to break a major bearish trend line at $210.10 on the same chart. Once there is a successful close above the trend line and $210.50, ETH buyers could gain control. The next resistance is at $212.00 followed by $214.00.
Should buyers gain pace above $214.00, the price is likely to revisit the $219.00-220.00 zone. However, considering the recent price action in ripple, there are chances of a sharp rally in Ethereum as well above the $220.00 resistance.
Conversely, if there is a downside reaction, the $208.00 and $205.50 levels are likely to act as strong barriers for buyers. Below $205.50, sellers may perhaps take control for a fresh decline towards the $200.00 or $198.00 level.
The market data is provided by TradingView, Bitfinex.