The US CPI data against the US Dollar caused Ethereum to drop. ETH plunged to $1200, before starting a sharp rise and surpassing $1,300.
- Ethereum recovered from all losses to climb back over the $1,300 resistance area.
- The current price trades above $1,300 as well as the simple 100-hour moving average.
- On the hourly chart of Ethereum/USD, there was an upward movement above a significant bearish trend line. Resistance near $1290 was seen (data feed via Kraken).
- It seems like the pair is aiming for a steady rise above $1,350.
Ethereum price jumps over 5%
After the US CPI data were released, Ethereum experienced a similar decline to that of bitcoin. ETH plunged below $1250 support. Even dropping below $1,200 before the bulls appeared.
The price fell to $1,188. Over 5% of the resistance zone at $1,250 was reached. The Ether price reached the 61.8% Fib level of the decline from the $1.306 swing high, to the $1.188 low.
A break was also observed above the major bearish trendline with resistance at $1,290, on an hourly chart for ETH/USD. Now, the pair trades above $1300 as well as the simple 100-hour moving average.
Near the $1,335 mark is immediate resistance. The 1.236 Fib extension point of the downmove from $1,306 high to $1,188 low is located near it. Near the $1,350 mark is the first major resistance. The doors to further gains could be opened by a clear upward break of the $1,350 resistance area.
Source: TradingView.com ETHUSD
The price could rise to the $1,400 level in the above scenario. Price gains could push the price higher towards the $1500 resistance.
Is there a new decline in ETH?
It could begin a downtrend correction if ethereum does not climb above $1,335 resistance. The $1,310 level is the initial support for the downside.
Next major support will be near the $1290 level and the 100-hourly simple moving average. A dip below $1290 could trigger a further decline to $1250. If there is more loss, it could open up the possibility of a push towards $1200.
Technical indicators
Minutely MACD – In the bullish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The RSI of ETH/USD currently lies in the overbought area.
Major Support Level – $1,290
Major Resistance Level – $1,335