Key Highlights

· ETH price remained well supported and it recently traded towards the $540 level against the US Dollar.

· There is a key bullish trend line forming with support at $510 on the hourly chart of ETH/USD (data feed via Kraken).

· The pair is currently correcting lower, with supports on the downside near the $510, $500 and $490 levels.

Ethereum price is positioned nicely against the US Dollar and Bitcoin. ETH/USD may correct lower, but it remains in an uptrend above the $490 support level.

Ethereum Price Support

The past few sessions were positive for ETH price above the $500 level against the US Dollar. The price extended gains and traded above the last swing high of $533. However, the move was contained and the price traded as high as $537.81. Later, a downside correction initiated and the price declined below $530. It also traded below the 23.6% Fib retracement level of the last leg from the $481 low to $537 high.

However, the downside move remains limited since there are many supports near $500. There is also a key bullish trend line forming with support at $510 on the hourly chart of ETH/USD. Moreover, the 50% Fib retracement level of the last leg from the $481 low to $537 high is also near $509. Therefore, a break below $509-510 won’t be easy. If sellers succeed in pushing the price below $509, it could trade back towards the $500 level. The next major support is close to the $490 level and the 100 hourly simple  moving average.

Looking at the chart the current price action is positive above $490. However, the price must gain traction above the $535-540 resistance zone for more gains. Above $540 resistance, the chances are high of an upside break above the $550 level.

Hourly MACD – The MACD is currently in the bearish zone.

Hourly RSI – The RSI has moved down sharply below the 50 level.

Major Support Level – $490

Major Resistance Level – $540