Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Ethereum spiked lower after the US CPI release against the US Dollar. ETH dived to $1,200 before it started a sharp increase and surpassed $1,300.
- Ethereum trimmed all losses and climbed back above the $1,300 resistance zone.
- The price is now trading above $1,300 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,290 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair seems to be eyeing a steady increase above the $1,350 resistance zone.
Ethereum Price Jumps Over 5%
Ethereum faced a sharp decline after the US CPI data was released, similar to bitcoin price. ETH dropped below the $1,250 support level. It even spiked below the $1,200 level before the bulls emerged.
A low was formed near $1,188 and the price started a strong increase. There was over 5% rally above the $1,250 resistance zone. Ether price broke the 61.8% Fib retracement level of the downward move from the $1,306 swing high to $1,188 low.
Besides, there was a break above a major bearish trend line with resistance near $1,290 on the hourly chart of ETH/USD. The pair is now trading above $1,300 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $1,335 level. It is near the 1.236 Fib extension level of the downward move from the $1,306 swing high to $1,188 low. The first major resistance is near the $1,350 level. A clear upside break above the $1,350 resistance zone could open the doors for more gains.
Source: ETHUSD on TradingView.com
In the stated case, the price may perhaps rise towards the $1,400 resistance. Any more gains might send the price towards the $1,500 resistance.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,335 resistance, it could start a downside correction. An initial support on the downside is near the $1,310 level.
The next major support is near the $1,290 level and the 100 hourly simple moving average. A downside break below the $1,290 might start a fresh decline to $1,250. Any more losses may perhaps open the gates for a move towards the $1,200 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now in the overbought zone.
Major Support Level – $1,290
Major Resistance Level – $1,335
