ETH price traded to a new monthly high close to $240 before correcting lower against the US Dollar.

The price is currently holding an important support near the $222 and $224 levels.

Yesterday’s highlighted important bullish trend line is active with support near $224 on the hourly chart of ETH/USD (data feed via Kraken).

The pair could bounce back as long as there is no daily close below the $220 support area.

Ethereum price is trading above a couple of important supports versus the US Dollar, and bitcoin retreated from well above $12,000. ETH price might climb higher again as long as above $220.

Ethereum Price Analysis

Yesterday, there was a sharp rise in bitcoin and Ethereum price above $12,200 and $230 respectively against the US Dollar. The ETH/USD pair even traded above the $235 resistance and settled above 100 hourly simple moving average. The pair traded close to the $240 level and formed a new monthly high. However, the bulls failed to break the $240 resistance. As a result, there was a sharp downside correction below the $235 and $230 support levels.

Moreover, there was a break below the 50% Fib retracement level of the last rally from the $216 low to $240 swing high. The price even declined below the $225 support and spiked below the 100 hourly SMA. However, the $222 support level acted as a support. Additionally, the 76.4% Fib retracement level of the last rally from the $216 low to $240 swing high acted as a support.

More importantly, yesterday’s highlighted important bullish trend line is active with support near $224 on the hourly chart of ETH/USD. At the moment, the price is currently trading above the $222 and $224 support levels. On the upside, an immediate resistance is near the $228 level. If there is an upside break above $228 and $230, the price may climb back towards the $240 level.

On the other hand, a close below the trend line, the 100 hourly SMA, and $220 could spark another bearish wave in the near term. The next important support for the bulls below $220 is near the $212 level.

Looking at the chart, Ethereum price is currently holding a couple of key uptrend supports above $220. Therefore, as long as the price is above $220, there could be a slow and steady rise. A successful break above $230 is needed for a decent rise towards the $235 and $240 resistances.

ETH Technical Indicators

Hourly MACD – The MACD for ETH/USD is likely to move back into the bullish zone.

Hourly RSI – The RSI for ETH/USD is currently moving higher towards the 50 level.

Major Support Level – $220

Major Resistance Level – $230