Ethereum surged above the $1,300 resistance zone against the US Dollar. ETH corrects gains but remains supported at $1,250 and $1,230.
- Ethereum picked up pace for a move above $1,300 before the bears emerged.
- The price is now trading above $1,250 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair might continue to correct lower towards the $1,250 and $1,230 support levels.
Ethereum price expects another increase
Ethereum price extended its rise above the $1,250 resistance zone. ETH even surged above the $1,300 resistance zone and settled above the 100 hourly simple moving average, similar to Bitcoin.
However, the bears have been active above the $1,300 resistance zone. Ether price traded as low as $1,309 before staging a downside correction. The price fell below the 23.6% Fib retracement level of the bullish move from the $1,150 swing low to the $1,309 high.
Also, there was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD. The pair is still trading above $1,250 and the 100 hourly simple moving average.
Immediate resistance on the upside is near $1,290. The first major resistance is near the $1,300 level. A close above the $1,300 resistance could propel the price higher. The next major resistance is near the $1,350 level, above which ether price could test $1,400.
If the bulls remain in action above $1,400, the price could surge towards the $1,450 resistance zone. Further gains could send the price towards the $1,500 resistance zone.
Dips supported in ETH?
If Ethereum fails to start another surge above the $1,300 resistance, it could initiate a downside correction. Initial support on the downside is near $1,250 and the 100 hourly simple moving average.
The next major support is near $1,230 or the 50% Fib retracement level of the move up from the $1,150 swing low to $1,309 high. If there is a break below $1,230, the price could test the $1,180 support. Further losses could lead the price towards the $1,150 support.
Technical indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Greater support level – $1,230
Main resistance level – $1,300
Featured image from iStock
