Ethereum started a consolidation phase above the $1,300 level against the US Dollar. ETH could start a new rally if there is a clear move above $1350.
- Ethereum recovered above $1,300 and the consolidation phase began.
- The price is now trading above $1,310 and the 100 hourly simple moving average.
- There is a major bearish channel forming with resistance near $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 eyes broken upside down
Ethereum started file steady wave of recovery Above the $1,300 resistance area. The bulls were active above the $1,300 level and ETH settled in a short-term positive territory.
There was a clear move above the 50% Fib retracement level of the major decline from the $1,400 swing high to $1,252 low. Ether price even rose above the resistance at $1340, but the rallies were limited. It is now trading above $1,310 and 100 hourly simple moving average.
There is also a major descending channel forming with resistance near $1340 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near $1340 and $1350.
The next major resistance is near the $1,364 level. It is near the 76.4% Fib retracement level of the major decline from the $1,400 swing high to $1,252 low. A clear break above $1,364 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 area, above which the price could rise to $1,500.
A new drop in ETH?
If Ethereum fails to climb above the $1340 resistance, it may start a new decline. There is initial support on the downside near the $1,310 level.
The next major support is near the $1,290 level and the channel’s lower trendline. A break-down below the $1,290 level may send the price towards the $1,265 support level in the near term. Any further losses could trigger the selling and the price could drop to $1,250 or even around $1,220.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
Key Support Level – $1,290
Key Resistance Level – $1,350