Here’s Why Bulls Are Comfortable


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.

Ethereum price

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.

Technical Indicators

MACD per hourETH/USD’s MACD is losing momentum in bullish territory.

Hourly RSIThe RSI for ETH/USD is now just above the 50 level.

Key Support Level – $1,290

Key Resistance Level – $1,350



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