Ethereum is facing resistance above $1,220 against the US Dollar. ETH could start another decline if it fails to stay above $1,200 and the 100 hourly SMA.
Ethereum started an upside correction above the $1,180 resistance zone.
The price is now trading above $1,200 and the 100 hourly simple moving average.
There is a short-term contracting triangle with resistance near $1,220 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start another upward move if there is a wave above the $1,220 resistance.
Ethereum Price Eyes Recovery
Ethereum price found support near the $1,150 zone and started a recovery wave. ETH was able to clear the $1,180 and $1,190 levels. The price even climbed above the $1,200 level and the 100 hourly simple moving average, similar to bitcoin.
A high was formed near $1,230 before the price started a consolidation phase. Ether price is now trading near the 23.6% Fib retracement level of the recent increase from the $1,150 swing low to $1,230 high.
The price is now trading above $1,200 and the 100 hourly simple moving average. There is also a short-term contracting triangle with resistance near $1,220 on the hourly chart of ETH/USD. The first major resistance is near the $1,220 level.
Source: ETHUSD on TradingView.com
A clear upside break above the $1,220 resistance and then a move above the $1,230 level could initiate a decent increase. The next major resistance could be $1,260. If the bulls clear the $1,260 resistance, the price might rise towards $1,300. Any more gains might send the price towards the $1,350 resistance zone. An intermediate resistance could be near the $1,320 level.
Fresh Drop in ETH?
If ethereum fails to climb above the $1,220 resistance, it could start another bearish wave. An initial support on the downside is near the $1,200 level.
The next major support is near the $1,190 level or the 50% Fib retracement level of the recent increase from the $1,150 swing low to $1,230 high. A clear downside break below $1,190 might push the price lower towards the $1,150 support. Any more losses could lead the price towards the $1,100 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,190
Major Resistance Level – $1,220
