Home CryptocurrencyAnalysis Ethereum is avoiding a major downtrend, a major Bulls Eye breakout

Ethereum is avoiding a major downtrend, a major Bulls Eye breakout

by SuperiorInvest

Ethereum has initiated an upward correction above $1,250 against the US dollar following XRP’s rally. ETH could gain bullish 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 major bearish trendline is forming with resistance near $1,385 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could recover further and clear the key $1,400 resistance zone.

The price of Ethereum is recovering

Ethereum managed to hold above $1,220 support zone. ETH started an upward correction above the $1250 level after ripple’s xrp started a strong move up.

Ether price managed to clear the $1,260 and $1,280 resistance levels. There was a break above the 50% Fib retracement level of the move down from the $1,420 swing high to the $1,220 low. It is now trading above $1,300 and 100 hour simple moving average.

The price appears to be trading in a positive zone above the $1,320 level. On the upside, the price faces resistance near the $1,380 level.

A major bearish trend line is also forming on the hourly chart of ETH/USD with resistance near $1,385. The trendline is near the 76.4% Fib retracement level of the downward move from the $1,420 swing high to the $1,220 low.

Source: ETHUSD on TradingView.com

Another major resistance is near the $1,400 level. A clear break above $1,400 could initiate a decent rally towards the $1,450 level. Any further gains could possibly open the door for a move towards the $1,500 resistance.

Another drop in ETH?

If Ethereum fails to recover above the $1,400 resistance, a new downtrend could begin. Initial downside support is near the $1,330 zone and the 100 hourly simple moving average.

Another major support is near the $1,288 level. A downside break below the $1,288 support could trigger another sharp decline. In the mentioned case, the price of Ether could fall towards the level of 1220 USD in the near future. Any further losses could increase selling and the price could fall to $1,150.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now gaining strength in the bullish zone.

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

Major Support Level – $1,288

Major resistance level – $1,400

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