Here’s Why Ethereum Recovery Won’t Be Easy, $140 Holds Key For Next Rally

Ethereum is currently consolidating above the $212 support area against the US Dollar. ETH price must climb above $228 and $238 to start a strong recovery in the near term. Ethereum is showing a few positive signs above the $212 level against the US Dollar. The price is likely to retest $228, which is the first major hurdle for the bulls. There is a key bearish trend line forming with resistance near $228 on the hourly chart of ETH/USD (data feed via Kraken). Bitcoin price is also consolidating above the $8,500 support area. Ethereum Price Facing Hurdles In the past few sessions, Ethereum mostly traded in a range below the $228 and $230 levels against the US Dollar. ETH price seems to be consolidating in a contracting range, with resistance near the 100 hourly simple moving average and support near $212. The recent low was $212 and the price is currently moving higher. It is testing the 50% Fib retracement level of the downside reaction from the $228 high to $212 low. On the upside, there are many key hurdles waiting near the $225 and $228 levels. An initial resistance is near the $222 level. It represents the 61.8% Fib retracement level of the downside reaction from the $228 high to $212 low. The first major hurdle for the bulls is near the $228 level. More importantly, there is a key bearish trend line forming with resistance near $228 on the hourly chart of ETH/USD. Therefore, Ethereum could struggle to gain bullish momentum above the $225 and $228 levels. Ethereum Price The next major resistance is near the $238 level (the breakout zone). A successful close above the $238 level could open the doors for a larger upward move in the near term. The next stop for the bulls may perhaps be $255 or even $260. Downside Break? If Ethereum fails to recover above the $225 and $228 resistance levels, it might start another decline. On the downside, an initial support is near the $212 level. If there is a downside break below the $212 level, there is a risk of more losses below the $208 support area. The next major supports are seen near the key $200 handle. Technical Indicators Hourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone. Hourly RSI – The RSI for ETH/USD is rising and it is currently above the 50 level. Major Support Level – $212 Major Resistance Level – $228

from NewsBTC https://www.newsbtc.com/2020/03/02/ethereum-recovery-wont-be-easy-140-holds-key/

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