Ethereum has started a decent rally above $1,180 against the US dollar. ETH could start a new downtrend if it stays below the $1,250 resistance.
- Ethereum struggled to gain momentum for a move above the $1,230 resistance level.
- The price is now trading above $1,170 and the 100 hourly simple moving average.
- A short-term bullish flag is forming with resistance near $1,200 on the hourly chart of ETH/USD (data source via Kraken).
- The pair could start a new decline if there is no clear move above $1,230 and $1,250.
Ethereum price faces rejection
Ethereum price started a wave of recovery above the $1,150 resistance, similar to bitcoin. ETH even climbed above the $1,200 resistance and settled above the 100 hourly simple moving average.
However, no test took place $1,230 resistance zone. Ether price is trading up to $1,215 and is currently correcting gains. There was a slight decline below the $1,200 level. It is now nearing the 23.6% Fib retracement level of the move up from the $1,073 swing low to the $1,215 high.
It is now trading above $1,170 and the 100 hourly simple moving average. A short-term bullish flag is also forming with resistance near $1,200 on the hourly chart of ETH/USD. Immediate resistance to the upside is near the $1,200 level and the channel trendline.
Source: ETHUSD on TradingView.com
Another major resistance is near the $1,230 level. A key breakout zone is located near the $1,250 level. For the price to move into the positive zone, it needs to settle above $1,250. In the said case, the price of Ether can probably rise towards the $1,320 resistance zone. Any further gains could open the door for a test of the $1,400 resistance zone.
Another drop in ETH?
If Ethereum fails to climb above the $1,230 resistance, this could trigger another decline. Initial downside support is near the $1,170 level and the 100 hourly simple moving average.
Another major support is near the $1,150 level or the 50% Fib retracement level on an upward move from the $1,073 swing low to $1,215, below which the price of Ether can possibly gain bearish momentum. In the given scenario, the price could fall towards the $1,070 support zone.
Hourly MACD – The MACD for ETH/USD is now gaining strength in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,150
Major resistance level – $1,230