Basing for the next higher move

The price of Ethereum was corrected lower and the support of $ 208.00 was tested. The ETH / USD is probably positioned for the next rise above the resistance of $ 212.00.

• The price of Ethereum is positioned well above the support area $ 207.00-208.00.
• ETH / USD is about to break a bearish trend line at $ 210.10 on the 30-minute chart.
• The price could exceed $ 212.00 and $ 214.00 levels in the short term.

Price analysis of Ethereum

Yesterday, the price of Ethereum started a downward correction after the rally to the $ 220.00 level. The price dropped below $ 214.00 and $ 210.00 support levels, but remained well above $ 205.00.

Click to enlarge the chart

Looking at the 30-minute ETH / USD chart, the pair traded up to $ 218.98 and was later adjusted below the $ 210.00 level and the 25 simple (30 minute) moving average. The sellers pushed the price below the 50% Fib retracement level of the last stage from the low of $ 201.26 to $ 218.98 high.

However, there was a strong buying interest around the area $ 207.00-208.00. In addition, the Fib retracement level at 61.8% of the last stage from the low of $ 201.26 to $ 218.98 prevented further slides.

As a result, a base was formed near $ 208.00 and the price started a new upward move. It has recently moved above the $ 209.00 level and the 25 simple (30 minute) moving average.

In the beginning, the price is going to stop an important downtrend line at $ 210.10 on the same chart. Once there is a positive closing above the trendline and $ 210.50, ETH buyers could gain control. The next resistance is $ 212.00 followed by $ 214.00.

If buyers earn the price above $ 214.00, it is likely that the price will revisit the $ 219.00-220.00 zone. However, considering the recent price action in ripple, there are chances for a strong recovery in Ethereum over the resistance of $ 220.00.

Conversely, if there is a negative reaction, the levels of $ 208.00 and $ 205.50 could represent a strong barrier for buyers. Below $ 205.50, sellers could perhaps take control for a new decline to the $ 200.00 or $ 198.00 level.

Market data is provided by TradingView, Bitfinex.