ETH price traded as low as $212 and recently corrected higher against the US Dollar.

The price traded above the $220 and $225 resistance levels, but it is still trading in a bearish zone.

There is an ascending channel forming with resistance near $240 on the hourly chart of ETH/USD (data feed via Kraken).

The pair could resume its slide if it struggles to clear the $240 resistance area in the near term.

Ethereum price is slowly recovering versus the US Dollar, along with bitcoin. ETH price is likely to face a lot of hurdles near the $240 and $242 resistance levels.

Ethereum Price Analysis

Recently, we saw a sharp decline in bitcoin, Ethereum, ripple and other major altcoins against the US Dollar. ETH/USD even broke the $240 and $230 support levels. The pair traded close to the $210 level and settled well below the 100 hourly simple moving average. A swing low was formed near the $212 level and the price recently started an upside correction.

More importantly, bitcoin price gained nearly 8%, sparking a recovery in ETH above the $220 resistance. Moreover, the price broke the 23.6% Fib retracement level of the last key drop from the $270 high to $212 low. It even traded above the $230 level, but struggled to clear the $235 resistance. At the outset, there is an ascending channel forming with resistance near $240 on the hourly chart of ETH/USD.

The channel resistance is also near the 50% Fib retracement level of the last key drop from the $270 high to $212 low. Therefore, the price is likely to face a strong resistance near the $240 area. A successful close above the $240 resistance may push the price towards the $250 and $255 levels. The 100 hourly SMA is also positioned near the $255 level and a bearish trend line on the same chart to act as a resistance.

Conversely, if there is no upside break above the $240 resistance, the price may resume its slide. An immediate support is near the $225 level, below which it could test the $220 level. If there are more losses, the price could revisit the $212 swing low in the near term.

Looking at the chart, Ethereum price is slowly recovering, but there are many hurdles on the upside near $235, $240 and $255. Therefore, sellers remain in action in the short term unless the bulls gain strength above $240 and $255.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD failed to stay above the 50 level and is currently moving lower.

Major Support Level – $220

Major Resistance Level – $240