The Ethereum exchange rate started a decent growth above the $1220 level. ETH gained momentum and was able to overcome the $1,240 resistance zone, paving the way for potential further gains

ETH even rose above the $1250 level and tested the $1275 level. The high was formed around $1271 and has recently started a slight downward correction. There was a move below the Fibonacci 23.6% retracement level of the up move from the swing low at $1204 to the high at $1271.

Ethereum is now above $1230 and the 100 hourly simple moving average. On the hourly chart of ETH/USD, a bullish trend line is also forming with support in the $1230 area.

Immediate resistance lies near the $1260 level. The next major resistance is near the $1270 level. A clear move above the $1270 resistance could lead to a decent upside. In this case, the ETH rate may possibly rise to the resistance of $1320. The next major resistance could be $1350, above which the rate could rise to the $1450 resistance zone.

If Ethereum fails to overcome the resistance at $1260, it could correct even lower. Initial support on the downside is near the $1240 level.

The next major support is near the $1230 level and the trend line. It sits near the 61.8% Fibonacci retracement level of the up move from the $1204 swing low to the $1271 high. A break below the trend line support could send Ether towards the $1,200 support. Any new losses may require checking the $1180 zone.

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