Ethereum price formed support near the $202.80 level and recovered. ETH/USD is facing a tough challenge near the $206.00 resistance.
- Ethereum price has formed a solid support near the $202.80 level.
- ETH/USD is trading inside a triangle pattern with resistance at $205.50 on the 30-minute chart.
- The price needs to surpass the $205.50 and $206.00 resistances for an upward acceleration.
Ethereum Price Analysis
After forming a short term top at $210.50, Ethereum price trimmed most gains. There was a downside reaction and the price traded towards the $203.00 level.
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Looking at the 30-minute chart of ETH/USD, the pair traded as low as $202.80 and later started consolidating losses. A solid support base was formed at $202.80 and later the price corrected a few points higher.
It moved above the 23.6% Fib retracement level of the last decline from the $210.50 high to $202.80 low. Moreover, there was a break above the $204.50 level and the 25 simple moving average (30-min).
The price spiked towards the $206.00 resistance, which prevented further gains. An intraday high was formed at $205.89 and the price even failed to test the $206.00 level. It seems like the price is trading in a tight range with support at $202.80 and resistance near $205.80.
More importantly, the price is trading inside a triangle pattern with resistance at $205.50 on the same chart. If there is an upside break above the range resistance at $205.80, the price may test the 50% Fib retracement level of the last decline from the $210.50 high to $202.80 low.
Once ETH/USD settles above the $206.50 level, buyers are likely to push the price back towards the $210.00 resistance. On the flip side, if the price fails to break the $205.80 or $206.50 resistance, it could decline towards the range support at $202.80.
An intermediate support is at $204.60 and the 25 simple moving average (30-min). Overall, Ethereum price could move into a positive zone once there is a break and close above the $205.80 and $206.50 resistance levels.
The market data is provided by TradingView, Bitfinex.