Ethereum Watch

Ethereum started a downside correction from the $288 high against the US Dollar, similar to bitcoin. ETH price is now forming a strong support above $260 and it could climb higher again.ETH price is trading with a solid bullish sentiment above the $260 level against the US Dollar.The price corrected lower recently, but the bulls defended $260 and $255.There is a major contracting triangle forming with resistance near $274 on the 4-hours chart of ETH/USD (data feed via Kraken).The pair could surge again if it breaks the $275 and $280 resistance levels in the near term.Ethereum Price Resume Its UptrendThis past week, Ethereum jumped above the $275 resistance area against the US Dollar. ETH price traded to a new 2020 high near $288 and settled nicely above the 100 simple moving average (4-hours).Recently, there was a downside correction from the $288 high. The price traded below the $275 support area. Moreover, there was a break below the 23.6% Fib retracement level of the recent surge from the $216 low to $288 high.Ethereum even spiked below the $260 support area. However, the $255 area acted as a strong support. Besides, the 50% Fib retracement level of the recent surge from the $216 low to $288 high was well protected.More importantly, there is major contracting triangle forming with resistance near $274 on the 4-hours chart of ETH/USD. If the price clears the $275 resistance area, it is likely to resume its uptrend.Ethereum PriceAn immediate resistance is near the $280 level, above which the price could revisit the $288 high. The main target for the bulls is $300 in the coming days, where the bears might take a stand.Downsides Remain SupportedOn the downside, the first support is seen visible near the $260 level and the triangle lower trend line. If Ethereum fails to stay above the triangle support, it could retest the main $255 support area.The next support is seen near the $252 level, below which the price is likely to continue lower towards the $244 support in the coming sessions. It represents the 61.8% Fib retracement level of the recent surge from the $216 low to $288 high.Overall, Ethereum remains supported and the bulls are likely eyeing a fresh increase above the $275 and $280 resistance levels in the near term.Technical Indicators4 hours MACD – The MACD for ETH/USD is slowly moving back into the bullish zone.4 hours RSI – The RSI for ETH/USD is still nicely above the 50 level.Major Support Level – $255Major Resistance Level – $275