Ethereum price rose lower after the release of the US CPI against the US Dollar. ETH dropped to $1,200 before starting a sharp increase and surpassing $1,300.
- Ethereum pared all losses and rose again above the $1,300 resistance area.
- The price is now trading above $1,300 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $1,290 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair appears to be looking for a steady increase above the $1350 resistance area.
Ethereum price jumps over 5%
Ethereum faced a sharp decline after the release of US CPI data, similar to Bitcoin price. ETH dropped below the $1,250 support level. It even jumped below the $1,200 level before the bulls showed up.
A bottom was formed near $1,188 and the price started a strong increase. There was a 5% rally above the $1,250 resistance area. Ether price has broken the 61.8% Fib retracement level of the downward movement from the $1,306 swing high to $1,188 low.
Besides, there was a break above the major downtrend line with resistance near $1,290 on the hourly chart of ETH/USD. The pair is now trading above $1,300 and the 100 hourly simple moving average.
There is immediate resistance on the upside near the $1,335 level. It is near the 1.236 Fib extension level of the downside move from the $1,306 swing high to $1,188 low. The first major resistance is near the $1,350 level. A clear bullish break above the $1350 resistance could open the doors for further gains.
source: ETHUSD on TradingView.com
In the mentioned case, the price may rise towards the $1400 resistance. Any further gains could send the price towards the $1500 resistance level.
A new drop in ETH?
If Ethereum fails to rise above the $1,335 resistance, it may start a downside correction. There is initial support on the downside near the $1,310 level.
The next major support is near the $1,290 level and the 100 hourly simple moving average. A break-down below $1,290 could start new low to 1250 USD. Any further losses may open the doors for a move towards the $1200 support level.
MACD per hour – MACD for ETH/USD is gaining momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now in the overbought territory.
Key Support Level – $1,290
Key Resistance Level – $1,335