TA: Ethereum Avoids a Major Downtrend, Bulls Eye Crucial Breakout
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Ethereum started an upward correction above $1,250 against the US dollar after the XRP rally. ETH could gain some upside momentum if it clears the $1,400 resistance.
- Ethereum started a wave of recovery above the $1,250 and $1,300 levels.
- The price is now trading above $1,300 and the 100 hourly simple moving average.
- A significant bearish trendline is forming on the hourly chart of ETH/USD with resistance near $1,385 (data feed via Kraken).
- The pair may recover further, clearing the key $1,400 resistance area.
Ethereum price recovers
Ethereum managed to stay above the $1,220 support area. ETH started an upward correction above the $1,250 level after ripple’s xrp started a strong rally.
Ether price was able to clear the $1,260 and $1,280 resistance levels. There was a break above the 50% Fib retracement level on the decline from the $1,420 swing high to $1,220. It is now trading above $1,300 and the 100 hourly simple moving average.
It looks like the price is trading in positive territory above the $1,320 level. On the upside, the price faces resistance near the $1,380 level.
A significant bearish trendline is also forming on the ETH/USD hourly chart with resistance near $1,385. The trendline is near the 76.4% Fib retracement level on the decline from the $1,420 swing high to $1,220.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,400 level. A clear break above $1,400 could initiate a reasonable rally towards the $1,450 level. Any further gains could perhaps open the door to a move towards the $1,500 resistance.
ETH’s New Bill?
If ethereum fails to recover above the $1,400 resistance, it could start another decline. Initial support on the downside is near the $1,330 zone and the 100-hour simple moving average.
The next major support is near the $1,288 level. A break below the $1,288 support could trigger another sharp decline. In the mentioned case, the price of Ether may fall towards the $1,220 level in the near future. Any further losses may increase selling and the price may fall to $1,150.
Hourly MACD – The ETH/USD MACD is now gaining momentum in the bullish zone.
Hourly RSI – The relative strength index of ETH/USD is now above 50.
Major support level – $1,288
Major resistance level – $1,400