Ethereum Price Analysis: ETH Sighting Crucial Bullish Break Towards $300

Recently, there was a sharp dip in bitcoin and Ethereum. ETH/USD declined below the $265.00 support area, but the $258.00 area acted as a strong buy zone and the price is currently sighting important bullish break.

Key Takeaways: ETH/USD

• Ethereum price jumped sharply after testing the $258.00 support area against the US Dollar.
• ETH/USD is currently trading near the $272.00 resistance and below a major bearish trend line on the 2-hours chart (data feed from Bitstamp).
• Bitcoin price is back above the $8,650 level, but facing hurdles near $8,720 and $8,750.

Ethereum Price Analysis

Recently, bitcoin price started a downside correction below $8,700. Similarly, there was a downward move in Ethereum price below the $270.00 and $265.00 support levels, but the $258.00 level acted as a strong buy zone.

Looking at the 2-hours chart, Ethereum price failed on multiple occasions near $277.00 and $280.00. As a result, there was a sharp downside correction below the $270.00 and $265.00 support levels.

The price even broke the 50% Fib retracement level of the last rally from the $246.29 to $280.05. There was a spike below the $260.00 support, but the $258.00 level acted as a strong support and prevented further losses.

More importantly, the price bounced back after testing the $258.00 support and the 50 simple moving average (2-hours, purple). The 61.8% Fib retracement level of the last rally from the $246.29 to $280.05 also acted as a decent support.

The price is now trading above the $265.00 and $270.00 level. However, the bulls are struggling near the $272.00 resistance and below a major bearish trend line on the same chart.

If there is a clear break above the trend line and $274.00, there are chances of a strong rally above the $280.00 and $282.00 resistance levels.

The next important resistances are near the $285.00 and $292.00 levels, above which Ethereum price is likely to test the $300.00 level. On the downside, there are many supports near the $268.00, $265.00 and $258.00 levels.

Overall, ETH price is trading with a positive bias and it is likely to break the $274.00 and $280.00 resistance levels in the coming sessions.