Ethereum Holds Strong Above $200: A Strengthening Case for Upside

Ethereum stayed strong above the main $200 support zone against the US Dollar. ETH price is struggling and it must surpass the $210 level to start a decent upward move. Ethereum is currently consolidating in a broad range above the $200 zone. The price is currently facing a couple of short term hurdles near the $210 level. There was a break above a major bearish trend line with resistance near $207 on the hourly chart of ETH/USD (data feed via Kraken). The pair might dip a few points, but the $200-$202 support zone holds the key. Ethereum Price Could Recover Yesterday, Ethereum failed to extend its recovery above the $212 level against the US Dollar. As a result, ETH price resumed its decline below the $205 level and the 100 hourly simple moving average. The price even spiked below the main $200 support zone. A new weekly low is formed near $195 and the price bounced back sharply. There was a break above the $202 and $204 resistance levels. More importantly, there was a break above a major bearish trend line with resistance near $207 on the hourly chart of ETH/USD. The pair spiked above the 50% Fib retracement level of the downward move from the $220 high to $195 low. Ethereum Price On the upside, Ethereum seems to be facing a strong resistance near the $210 level and the 100 hourly SMA. The 61.8% Fib retracement level of the downward move from the $220 high to $195 low is also near the $210 level. If Ether manages to surpass the $210 resistance level, it could continue to rise in the near term. The first major hurdle above $210 is near the $214 level, above which the price is likely to test the $220 level. Any further gains could lead the price towards the $230 resistance. Here’s Why $200 is a Crucial Support On the downside, there is a major support forming near the $202 and $200 levels. If Ethereum fails to stay above the crucial $200 support, the bears are likely to take control. A daily close below the $200 support level might clear the path for a push towards the $192 support zone. Any further losses may possibly lead the price towards the $182 and $180 support levels. Technical Indicators Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is currently just above the 50 level, with a bullish angle. Major Support Level – $200 Major Resistance Level – $210 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money. Image from unsplash.

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