Ethereum is trying to make an upside correction higher than $1,325 against US Dollar. ETH faces major resistance at the $1,380-$1,400 levels.
- Ethereum experienced a minor uptrend above the $13,325 level.
- The 100-hourly simple moving average and price are now below $1,400.
- The hourly chart for ETH/USD showed a break above the connecting bearish trendline with resistance at $1,355 (data feed via Kraken).
- A clear break above the $1.400 resistance zone could help the pair recover.
Ethereum price recovers slightly
Ethereum suffered losses, trading below $1,300. ETH recently began a short-term upward correction and traded at $1,281 low.
The resistance levels of $1,300, $1,325 and $1,325 were crossed. The 23.6% Fib Retracement level for the downmove from $1,475 swing high, to $1,281 lowest, was reached by Ether. A break was also seen above the connecting bearish trendline with resistance at $1,355 in the hourly chart for ETH/USD.
So much so that the price soared beyond $1,370. The bulls did not gain any strength beyond the 50% Fib Retracement level for the downmove from $1,475 swing high, to $1,281 lowest.
Ethereum trading is currently below $1.400, the 100 hourly simple moving mean. The upside is that the price faces resistance at the $1,380 mark. Near $1,400 is the next significant resistance and so is the simple moving average of 100 hours.
Source: TradingView.com ETHUSD
If the price breaks the $1,400 resistance, it could push the price to the $1.450 mark. A move above $1,400 may open the door to a movement towards $1.480 resistance.
New Drop in Ethereum?
It could begin a new decline if it fails to surpass the $1,400 resistance or the 100-hourly simple moving average. The $1,325 area is a support zone for the downside.
Nearly $1,300 is the next major support. Support is at $1,280. Another sharp drop could be possible if the support falls below $1,280. The above scenario could lead to a decline in ether prices towards $1,200.
Technical indicators
Minutely MACD – In the bearish zone, momentum is being gained by MACD for USD/ETH.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $1,325
Major Resistance Level – $1,400