Ethereum entered a phase of consolidation above $1,300 against the US dollar. If the price of ETH moves above $1,350, ETH might see a renewed increase.
- Ethereum recovered more than $1,300 and began a consolidation phase.
- The current price trades above $1,310 as well as the simple 100 hour moving average.
- A key channel of decline is formed with resistance at $1,340 (data feed via Kraken).
- A clear break above the $1.350 resistance zone could signal a renewed increase.
Ethereum Price Takes a Break
Ethereum began a gradual recovery above the $1300 resistance level. The bulls were active at the $1,300 resistance zone and ETH settled in a positive short-term zone.
Clear movement above 50% Fib Retracement of the pivotal decline from $1,400 swing high and $1,252 low was evident. The Ether price spiked over the $1,340 resistance. However, upsides were very limited. The Ether price is currently trading at $1,310 above the 100-hourly simple moving average.
A key channel of decline is also visible with resistance close to $1,340 in the hourly chart. The upside is that the price faces resistance at the $1,340-$1,350 levels.
It is located near the $1,364 resistance level. This is close to the 76.4% Fib Retracement level that marked the pivotal decline from $1,400 high to $1,252 lowest. It could start to rise towards $1,400 if the price breaks $1,364.
Source: TradingView.com ETHUSD
Any further gains could open up the possibility of a move toward the $1450 resistance zone. Above which price could soar to $1,500
New Decline in the ETH
It could begin a new decline if it fails to rise above $1,340. Initial support is at the $1,310 mark.
Next major support will be near the $1290 level, and the channel lower trends line. In the short term, a downside breakout below $1,290 could push the price to the $1,265 level. Selling could be increased if there are more losses. The price may drop as low as $1,250, or even lower towards $1,220.
Technical indicators
Hourly MACD – MACD for USD/ETH is losing momentum now in bullish territory.
Hourly RSI – The current RSI of ETH/USD stands just above the 50 mark.
Major Support Level – $1,290
Major Resistance Level – $1,350
