Ethereum started a decent recovery wave above $1,180 against the US Dollar. ETH could start a fresh decline if it stays below the $1,250 resistance.
Ethereum struggled to gain pace for a move above the $1,230 resistance level.
The price is now trading above $1,170 and the 100 hourly simple moving average.
There is a short-term bullish flag forming with resistance near $1,200 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh decline if there is no clear move above $1,230 and $1,250.
Ethereum Price Faces Rejection
Ethereum price started a recovery wave 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, there was no test of the $1,230 resistance zone. Ether price traded as high as $1,215 and is currently correcting gains. There was a minor decline below the $1,200 level. It is now approaching the 23.6% Fib retracement level of the upward move from the $1,073 swing low to $1,215 high.
It is now trading above $1,170 and the 100 hourly simple moving average. There is also a short-term bullish flag forming with resistance near $1,200 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,200 level and the channel trend line.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,230 level. The key breakout zone sits near the $1,250 level. To move into a positive zone, the price must settle above $1,250. In the stated case, ether price may perhaps rise towards the $1,320 resistance zone. Any more gains might open the doors for a test of the $1,400 resistance zone.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,230 resistance, it could start another decline. An initial support on the downside is near the $1,170 level and the 100 hourly simple moving average.
The next major support is near the $1,150 level or the 50% Fib retracement level of the upward move from the $1,073 swing low to $1,215 high, below which ether price may perhaps gain bearish momentum. In the stated scenario, the price could decline towards the $1,070 support zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum 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
