Following the XRP rally and Ethereum’s upside correction, it traded above $1,250 in USD. If it breaks the $1,400 resistance, ETH may gain bullish momentum.
- Ethereum began a wave for recovery that went beyond the $1,250 or $1,300 levels.
- The current price trades above $1,300 as well as the simple 100-hour moving average.
- A major bearish trendline is emerging with resistance close to $1,385 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- If the pair clears $1,400 resistance, it could be able to recover more.
Ethereum Price Recovery
Ethereum managed to remain above the $1.220 support level. ETH started an upside correction above the $1,250 level after ripple’s xrp started a strong upward move.
The resistance levels of $1,260 and $1.280 were broken by the Ether price. It broke above the 50% Fib level of the decline from the $1.420 swing high to the $1.220 low. The 100-hourly simple moving average and $1,300 are now in trading.
The price seems to be trading above $1,320 in a positive area. The upside is that the price faces resistance at the $1,380 mark.
A major bearish pattern line is also visible on the hourly chart. It forms resistance around $1,385 and it’s quite strong. It is close to the 76.4% Fib level of the decline from the $1.420 swing high and low to the $1.220 lowest.
Source: TradingView.com, ETHUSD
Nearly $1,400 is the next significant resistance. If the price breaks above $1,400, it could lead to a solid rise towards $1,450. A move toward the $1,500 resistance may be possible with further gains.
Is there a new decline in ETH?
If the resistance of $1,400 is not overcome, ethereum could experience a further decline. Initial support for the downside lies near the $1330 zone and 100-hourly simple moving average.
Next major support will be near $1,288. Another sharp drop could be triggered by a downside breakout below the $1.288 level. If this happens, the ether price could drop to the $1,220 mark in the short term. The price could drop as a result of additional losses.
Technical indicators
Hourly MACD – In the bullish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The RSI is at 50 for USD/ETH.
Major Support Level – $1,288
Major Resistance Level – $1,400
