Ethereum started an upward correction from the $880 area against the US Dollar. ETH is rising and attempting a bullish breakout above the $1,150 resistance area.
- Ethereum started an upward correction above the $1,000 resistance area.
- The price is now trading above $1000 and the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with resistance near $1,150 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady increase if the key resistance area at $1,150 is cleared.
Ethereum price faces a major barrier
Ethereum started decent upward movement From the $880 support area. ETH rose above $950 and $1,000 to move into a short-term bullish zone.
The bulls pushed the price above the 50% Fib retracement level of the main decline from the $1,255 swing high to the $880 low. Finally, there was a move above the $1,100 level. However, the ether price is now facing a significant resistance near the $1,150 and $1,160 levels.
The price is now trading above $1000 and Simple moving average per 100 hours. It is also above the 23.6% Fib retracement level of the upward move from the $880 swing low to $1,174 high.
Besides, there is also a short-term contracting triangle forming with resistance near $1,150 on the hourly chart of ETH/USD. There is an immediate resistance near the $1,150 level. The next major resistance is near the $1,160 area. A clear move above the $1,160 resistance area may start a steady upward move.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,260 level. Any further gains could start to move towards the $1350 resistance in the near term.
A new drop in ETH?
If Ethereum fails to rise above the $1150 resistance, it may start a new decline. There is initial support on the downside near the $1,100 area and the triangle’s lower trendline.
The next major support is near the $1030 region. It is near the 50% Fib retracement level of the upward move from the $880 swing low to $1,174 high. Any further losses may require a move towards the $950 support area.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $1,030
Key Resistance Level – $1,150