Ethereum found support near $1,070 and recovered above $1,150 against the US dollar. ETH could continue to rise, but the upside could face obstacles near $1,200 and $1,230.
- Ethereum initiated an upward correction from the $1,070 and $1,080 support levels.
- The price is now trading above $1,120 and the 100 hourly simple moving average.
- On the hourly chart of ETH/USD (data feed via Kraken), there was a break above the main bearish trendline with resistance near $1,140.
- The pair could rise further to $1,200 or even $1,230 in the near term.
The price of Ethereum is recovering
The price of ethereum remained well bid near the last swing low at $1,070, similar to bitcoin. ETH formed a base above the $1,070 and $1,080 levels before starting an upward correction.
There was a decent wave of recovery above the $1,120 and $1,140 resistance levels. Ether price jumped above the 50% Fib retracement level of the key decline from the $1,232 swing high to the $1,073 low. Additionally, there was a break above the major bearish trend line with resistance near $1,140 on the hourly chart of ETH/USD.
The price is now trading above $1,120 and 100 hour simple moving average. Immediate resistance to the upside is near the $1,170 level. It is near the 61.8% Fib retracement level of the key decline from the $1,232 swing high to the $1,073 low.
Source: ETHUSD on TradingView.com
Another major resistance is near the $1,200 level. A clear break above the $1,200 resistance could send the price to the $1,230 resistance zone. Any further gains could open the door for a test of the $1,300 resistance zone.
Another drop in ETH?
If Ethereum fails to climb above the $1,200 resistance, another decline may begin. Initial downside support is near the $1,150 level and the 100 hourly simple moving average.
Another major support is near the $1,120 level, below which the price of Ether may possibly fall further. In the given scenario, the price could fall towards the $1,070 support zone in the near term. Any further losses could prompt a move towards the major $1,000 support in the coming sessions.
Hourly MACD – The MACD for ETH/USD is now gaining strength in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major support level – $1,120
Major resistance level – $1,200