Ethereum Eyes Downside Thrust Before A Strong Upsurge

Ethereum is currently declining and trading below $270 levels against the US Dollar. ETH price could dive towards the $255 support area before it starts a fresh upward move.Ethereum struggled to climb above the $280 resistance and declined recently against the US Dollar.The price is currently declining and trading below the $265 support area.There is a key descending channel forming with resistance near $266 on the hourly chart of ETH/USD (data feed via Kraken).Bitcoin price is also moving lower towards the $9,600 and $9,500 support levels.Ethereum Price Could Extend Its DeclineYesterday, we saw a decent increase in Ethereum above the $270 resistance level against the US Dollar. ETH price even climbed above the $275 level and the 100 hourly simple moving average.However, it failed to extend gains above the $278 and $280 levels. As a result, there was a fresh decline below the $275 and $270 levels. During the decline, there was a break below a crucial ascending channel with support near $268 on the hourly chart of ETH/USD.Ethereum PriceIt opened the doors for more losses below the $265 level the 100 hourly simple moving average. Finally, Ethereum price traded close to the $255 support area and it is currently correcting higher.There was a break above the 23.6% Fib retracement level of the recent decline from the $278 high to $256 low. On the upside, there are many key hurdles seen near the $266 and $268 levels.Besides, there is a key descending channel forming with resistance near $266 on the same chart. Therefore, Ethereum could extend its decline below the $260 level in the near term. It may perhaps spike towards the $255 and $252 support levels before the bulls appear again.Fresh Increase?On the downside, there are a few key supports near the $255 and $252 levels. The next key support is near the $245 level, where the bulls are likely to take a strong stand.Once the current correction wave is complete, Ethereum is likely to climb back above the $266 and $268 levels. The next key resistance is near the $275 level, above which the price is likely to accelerate towards the $280 and $285 levels in the coming days.Technical IndicatorsHourly MACD The MACD for ETH/USD is about to move back into the bullish zone.Hourly RSI The RSI for ETH/USD is currently near the 40 level, with a minor bearish angle.Major Support Level – $255Major Resistance Level – $268

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