Ethereum remained supported above the $1,240 level against the US Dollar. ETH is rising and might soon attempt an upside break above the $1,300 barrier.
Ethereum remained well bid above the $1,240 and $1,220 levels.
The price is now trading above $1,260 and the 100 hourly simple moving average.
There is a major contracting triangle forming with resistance near $1,280 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a strong increase if there is a clear move above the $1,300 barrier.
Ethereum Price Eyes Upside Break
Ethereum price started a downside correction from the $1,285 resistance. ETH declined below the $1,260 level and the 100 hourly simple moving average.
However, the bulls were again active near the $1,240 support zone. A low was formed near $1,240 and ether price started a fresh increase, similar to bitcoin. The price climbed above the $1,260 level and the 100 hourly simple moving average.
It is now consolidating near the $1,275 level. There was a test of the 23.6% Fib retracement level of the recent increase from the $1,240 swing low to $1,278 high.
An immediate resistance on the upside is near the $1,280 level. There is also a major contracting triangle forming with resistance near $1,280 on the hourly chart of ETH/USD. The first major resistance is near the $1,290 and $1,300 levels.
Source: ETHUSD on TradingView.com
A close above the $1,300 resistance might start a strong increase. The next major resistance could be $1,340. Any more gains might send the price towards the $1,400 resistance zone.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,280 resistance, it could start another downside correction. An initial support on the downside is near the $1,260 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the recent increase from the $1,240 swing low to $1,278 high is also near $1,260. The next major support is near the $1,240 level, below which the price could even retest the $1,200 support. Any more losses could lead the price towards the $1,165 support in the coming days.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $1,240
Major Resistance Level – $1,300