TA: Ethereum Struggles Near $1,250: Why ETH Remains Attractive On Dips

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained bullish momentum above the $1,150 resistance against the US Dollar. ETH price broke the $1.200 resistance, but it struggled to clear the $1,250 level.

Ethereum started a steady increase above the $1,150 and $1,200 resistance levels.
The price is facing a resistance near $1,250 level, but it is above the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $1,200 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct lower, but the previous resistance near $1,150 could act as a strong support.

Ethereum Price Turns Green

There was a strong increase in bitcoin and Ethereum above $38,500 and $1,150 respectively. ETH price gained bullish momentum after it broke the $1,150 resistance and the 100 hourly simple moving average.

The price even broke the $1,200 and $1,220 resistance levels. However, the bears were active near the $1,250 level. The bulls made two attempts to clear the $1,250 zone, but they failed. The recent high was formed near $1,252 and the price is currently consolidating gains.

Source: ETHUSD on TradingView.com

It already tested the 23.6% Fib retracement level of the recent increase from the $983 swing low to $1,252 high. On the downside, there is a major bullish trend line forming with support near $1,200 on the hourly chart of ETH/USD.

A downside break below the trend line support could lead the price towards the $1,150 support zone. On the upside, the $1,250 level is a major breakout zone. A clear break above the $1,250 level could open the doors for a steady increase in the coming sessions. The next key resistance is near the $1,300 and $1,320 levels.

Dips Supported in ETH?

If ethereum corrects lower below the trend line and $1,200, it could find a strong support near $1,150 and the 100 hourly simple moving average.

The next major support is near $1,120. It is close to the 50% Fib retracement level of the recent increase from the $983 swing low to $1,252 high. Any more losses may possibly call for a fresh decline towards the $1,050 support level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is moving lower towards the 55 level.

Major Support Level – $1,150

Major Resistance Level – $1,250

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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