Ethereum Avoids a Major Downtrend, Bulls Eye Crucial Breakout


Ethereum started an upward correction above $1,250 against the US Dollar, after XRP surged. ETH could gain bullish momentum if it removes the $1,400 resistance level.

  • Ethereum started a recovery wave above the $1250 and $1,300 levels.
  • The price is now trading above $1,300 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,385 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could recover further as it clears the key $1,400 resistance area.

Ethereum price recovers

Ethereum managed to stay above $1220 support area. ETH started an upward correction above the $1250 level after Ripple’s XRP started a strong upward move.

Ether price managed to break above the $1,260 and $1,280 resistance levels. There was a break above the 50% Fib retracement level of the downside move from the $1,420 swing high to $1,220 low. It is now trading above $1300 and Simple moving average per 100 hours.

The price appears to be trading in positive territory above the $1320 level. On the upside, the price is facing resistance near the $1,380 level.

There is also a major bearish trend line forming with resistance near $1,385 on the hourly chart of ETH/USD. The trend line is near the 76.4% Fib retracement level of the downward movement from the $1,420 swing high to $1,220 low.

Ethereum price

source: ETHUSD on TradingView.com

The next major resistance is near the $1,400 level. A clear break above $1400 could lead to a decent rally towards the $1450 level. Any further gains could open the door for a move towards the $1500 resistance level.

A new drop in ETH?

If Ethereum fails to recover above the $1,400 resistance, it may start a new decline. There is initial support on the downside near the $1,330 area and the 100 hourly simple moving average.

The next major support is near the $1,288 level. A break-down below the support level at $1,288 could trigger another sharp decline. In the aforementioned case, the price of Ether may decline towards the $1220 level in the near term. Any further losses could trigger the selling and the price could drop to $1,150.

Technical Indicators

MACD per hourETH/USD’s MACD is gaining momentum in bullish territory.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Key Support Level – $1,288

Key Resistance Level – $1400



Leave a Comment

Your email address will not be published. Required fields are marked *