Ethereum managed to clear the $1,240 resistance zone against the US Dollar. ETH is showing positive signs and there might be a move above the $1,300 resistance.
- Ethereum is moving higher above the $1,220 and $1,240 resistance levels.
- The price is now trading above $1,220 and the 100 hourly simple moving average.
- There was a break above a key contraction triangle with resistance near $1,215 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue higher if there is a clear move above the $1,300 resistance.
Ethereum Price Gains Bullish Momentum
Ethereum price formed a base above the $1,200 level. ETH started a decent surge and managed to clear the $1,220 resistance zone, similar to Bitcoin.
There was a break above a key contraction triangle with resistance near $1,215 on the hourly chart of ETH/USD. It opened the doors for a move above the $1,250 resistance zone. The price tested the $1,270 zone and a high was formed near $1,271.
Ether price is now trading above $1,220 and the 100 hourly simple moving average. It is now correcting gains below $1,260. There was a move below the 23.6% Fib retracement level of the recent surge from the $1,204 swing low to $1,271 high.
Source: ETHUSD on TradingView.com
Immediate resistance is near $1,260. The next major resistance is near the $1,275 level. A clear move above the $1,275 resistance could indicate further upside. In the mentioned case, the price might perhaps rise towards the $1,300 resistance. The next major resistance might be $1,350, above which the price could surge towards the $1,420 resistance zone.
Dips Limited in ETH?
If Ethereum fails to clear the $1,275 resistance, it could continue to correct lower. Initial support on the downside is near $1,240.
The next major support is near $1,230. It is near the 50% Fib retracement level of the recent rally from the $1,204 swing low to $1,271 high. A downside break below $1,230 could send the price towards the $1,220 support. Further losses may require a test of the $1,200 zone.
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 above the 50 level.
Greater support level – $1,230
Main resistance level – $1,275
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