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Ethereum started a recovery wave above the $1,240 level against the US Dollar. ETH could gain bullish momentum once it clears the $1,280 and $1,300 resistance levels.
- Ethereum started a recovery wave above the $1,220 and $1,240 levels.
- The price is now trading near $1,260 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,275 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must settle above the $1,300 resistance to start a decent increase in the near term.
Ethereum Price Remains In Range
Ethereum remained well bid above the $1,170 level, similar to bitcoin. ETH started a steady recovery wave above the $1,200 resistance zone.
The price was able to clear the 50% Fib retracement level of the downward move from the $1,348 swing high to $1,170 low. There was also a spike above the $1,250 resistance zone. However, the price failed to gain strength above the $1,280 level. Ether price is now trading near $1,260 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $1,275 level. There is also a key bearish trend line forming with resistance near $1,275 on the hourly chart of ETH/USD.
The trend line is near the 61.8% Fib retracement level of the downward move from the $1,348 swing high to $1,170 low. The next major resistance is near the $1,300 level. A clear break above the $1,300 resistance could set the pace for a decent recovery wave.
Source: ETHUSD on TradingView.com
In the stated case, the price could rise towards the $1,350 level. Any more gains might send the price toward the $1,400 resistance zone.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,300 resistance, it could start another decline. An initial support on the downside is near the $1,225 level.
The next major support is near the $1,200 level, below which ether price may perhaps revisit the $1,170 support zone. If the bulls fail to protect the $1,170 support, there is a risk of a major decline. In the stated scenario, the price could decline towards the $1,100 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,170
Major Resistance Level – $1,300