Home CryptocurrencyAnalysis The price of Ethereum is recovering, but the bears are not out of the woods yet

The price of Ethereum is recovering, but the bears are not out of the woods yet

by SuperiorInvest

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.

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 – $1,150

Major resistance level – $1,250

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