Technically, the 12-hour chart indicators are showing signs of trend exhaustion.
Why is Ether Price struggling near $298?
It seems like the ETH/USD pair is not able to break the $298-$300.00 resistance zone. It made a couple of attempts to settle above $295.00 but failed.
Looking at the daily chart of ETH/USD, there is a monster confluence zone forming near $300.00. The mentioned $300.00 level is very important since it acted as both support and resistance on previous occasions.
The 50 percent Fibonacci retracement level of the last major decline from the $395.41 high to $200.91 low is also near $298.00-$300.00. Therefore, $300.00 is a major technical level and it won’t be easy for Ether buyers to gain momentum above it.
Having said that, a successful close above $300.00 would trigger heavy gains towards the next possible resistance at $340.00. On the downside, there is a connecting bullish trendline forming with support at $280.00 on the same chart.
The trendline support at $280.00 is significant for the current upside move. If Ether’s price fails to hold the $280.00 support, it would signal a short-term top and the price could decline back towards $250.00.
In the short term, there is a bullish trendline with support at $290.00 on the 2-hour chart of ETH/USD. Below $290.00, the pair would attempt a test of $280.00.
The bearish risk persists as long as Ether remains below the $300.00 level. The immediate support is now $290.00, followed by the trend support at $280.00. Resistances today comes at $294.00 and the mentioned $298.00-$300.00 zone.