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Ethereum is holding the key $1,150 support against the US Dollar. ETH is rising and might even clear the $1,250 resistance zone in the near term.
- Ethereum corrected lower, but the bulls were active near $1,150.
- The price is now trading above $1,180 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,195 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise steadily if it clears the $1,200 and $1,230 resistance levels.
Ethereum Price Eyes Fresh Increase
Ethereum price started a downside correction from the $1,230 resistance. ETH declined below the $1,200 support zone and the 100 hourly simple moving average, similar to bitcoin.
However, the bulls were active near the $1,150 zone. A low was formed near $1,150 and the price started another decent increase. Ether price was able to clear the $1,165 and $1,180 resistance levels. There was a clear move above the 23.6% Fib retracement level of the recent decline from the $1,236 swing high to $1,150 low.
Ether price is now trading above $1,180 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,195 level.
There is also a key bearish trend line forming with resistance near $1,195 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent decline from the $1,236 swing high to $1,150 low. The next major resistance is near the $1,230 level.
Source: ETHUSD on TradingView.com
The main breakout zone is near the $1,250 level. To start a strong increase, the price must settle above the $1,250 resistance. In the stated case, ether price could rise towards the $1,320 resistance zone. Any more gains might send the price towards the $1,420 resistance zone.
Fresh drop in ETH?
If ethereum fails to climb above the $1,230 resistance, it could start another decline. An initial support on the downside is near the $1,170 level.
The next major support is near the $1,150 level. If there is a break below $1,150, the price could even decline below $1,130. In the stated scenario, the price could drop towards the $1,075 support zone.
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 above the 50 level.
Major Support Level – $1,150
Major Resistance Level – $1,230
Featured image from iStock
