Ethereum recovered from the losses and rose above the $1,320 level against the US dollar. ETH could start a new rally if there is a clear move above $1350.
- Ethereum found support near the $1250 level and regained losses.
- The price is now trading above $1,300 and the 100 hourly simple moving average.
- There is a short-term contracting triangle forming with support at $1340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new increase if there is a clear move above the resistance area at $1350.
Ethereum price remains strong
Ethereum found support near the $1,250 level after… strong drop. ETH traded as low as $1,253 and started a fresh increase. There was a steady increase and the price managed to break above the $1300 resistance.
The bulls were active above the $1,300 level. There was a clear move above the 50% Fib retracement level of the downside move from the $1,399 swing high to $1,253. The price is now trading above $1,320 and Simple moving average per 100 hours.
There is also a short-term contracting triangle forming with the support at $1340 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near the $1,350 and $1,355 levels.
The next major resistance is near the $1,365 level. It is near the 76.4% Fib retracement level of the downside move from the $1,399 swing high to $1,253. A clear break above $1,365 could lead to a decent increase towards the $1,400 level.
source: ETHUSD on TradingView.com
Any further gains could open the door for a move towards the $1,450 resistance, above which the bulls could aim for a move to $1,500.
A new drop in ETH?
If Ethereum fails to climb above the $1,355 resistance, it may start a new decline. There is initial support on the downside near the $1340 level and the triangle’s lower trendline.
The next major support is near the $1,315 level. A break-down below the $1,315 level may send the price towards the $1,280 support level in the near term. Any further losses could trigger the selling and the price could drop to $1,250.
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 – $1,315
Key Resistance Level – $1,355