Ethereum has started a decent rally above $1,150 against the US dollar. ETH is now approaching a major hurdle near $1,230 and $1,250.
- Ethereum has initiated an upward correction above the $1,120 and $1,150 resistance levels.
- The price is now trading above $1,150 and the 100 hourly simple moving average.
- A key bullish trend line is forming with support near $1,190 on the hourly chart of ETH/USD (data source via Kraken).
- The pair could rise further towards $1,230, but the bears could take a strong stance.
The price of Ethereum is facing a hurdle
Ethereum price formed a base above the $1,070 level and started a wave of recovery, similar to bitcoin. ETH slowly moved higher and managed to clear the $1,150 resistance zone.
The bulls pushed the price above the 61.8% Fib retracement level on the move down from the $1,231 high to the $1,073 low. The price of ether is now trading above $1,150 and the 100 hourly simple moving average. A key bullish trendline is also forming on the hourly chart of ETH/USD with support near $1,190.
The pair appears to be consolidating above the 76.4% Fib retracement level of the move down from the $1,231 swing low at $1,073. Immediate resistance to the upside is near the $1,220 level.
Source: ETHUSD on TradingView.com
Another major resistance is near the $1,230 level and the $1,250 zone. To start a real wave of recovery and gain bullish momentum, the price needs to settle above $1,250. A clear close above the $1,250 resistance could send the price to 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 $1,250 resistance, this could trigger another decline. Initial downside support is near the $1,190 level and the trend line.
Another major support is near the $1,150 level and 100 hour simple moving average, below which the price of ether can possibly fall further. In the given scenario, the price could fall towards the $1,100 support zone in the near future. Any further losses could require a move towards the key $1,070 support.
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 – $1,150
Major resistance level – $1,250