Ethereum started a new rally after remaining stable near $1,000 against the US Dollar. ETH could rise further above the $1150 resistance area.
- Ethereum gained strength by moving above the $1,080 and $1,100 levels.
- The price is now trading above $1,100 and the 100 hourly simple moving average.
- There was a break above the major contracting triangle with resistance near $1,075 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising if there is a move above the $1150 resistance area.
Ethereum price hike
Ethereum remains stable above $1,000 support And there was no negative breakout. As a result, a base was formed and the price began to increase appropriately.
The price was able to remove two major obstacles near the $1070 region. There was a breakout above the major contracting triangle with resistance near $1,075 on the hourly chart of ETH/USD. The price even tested the 61.8% Fib retracement level of the major decline from the $1.235 high to $997 low.
Ether price traded as high as $1,158 and is trading well above Simple moving average per 100 hours. It is also well above the 23.6% Fib retracement level of the recent increase from the $1,025 swing low to $1,158 high.
Source: ETHUSD on TradingView.com
There is immediate resistance on the upside near the $1,150 level. The next major resistance is near the $1,180 area, above which the price may clear the $1,200 resistance. In the mentioned case, the price may rise towards the $1250 resistance. Any further gains could send the price towards the $1,300 area.
A new drop in ETH?
If Ethereum fails to rise above the $1150 resistance, it may start a downside correction. There is initial support on the downside near the $1,125 region.
The next major support is near the $1090 area and the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent increase from the $1,025 swing low to $1,158 high. A break-down below the support level at $1090 may put pressure on the bulls in the near term. The next major support is near $1060.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Key Support Level – $1,125
Key Resistance Level – $1,090