Ethereum is consolidating losses above the $1,200 support against the US Dollar. ETH could start a steady increase if there is a clear move above the $1,300 resistance.
Ethereum is facing resistance near the $1,240 and $1,250 levels.
The price is now trading below $1,240 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $1,240 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a decent increase if there is a clear move above $1,240 and $1,300.
Ethereum Price Consolidates
Ethereum price declined from the $1,300 resistance zone but it remained well supported near $1,200, similar to bitcoin. ETH formed a base and recently started a fresh increase above $1,210.
There was a steady increase above the $1,220 level. The price cleared the 23.6% Fib retracement level of the downward move from the $1,290 swing high to $1,184 low. However, ether price is facing resistance near the $1,240 zone.
It is trading below $1,240 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $1,240 on the hourly chart of ETH/USD.
The trend line is near the 50% Fib retracement level of the downward move from the $1,290 swing high to $1,184 low. An immediate resistance on the upside is near the $1,240 level. The next major resistance is near the $1,250 level.
Source: ETHUSD on TradingView.com
A clear break above the $1,250 resistance could send the price towards the $1,300 resistance zone. If the bulls remain in action and the price settles above $1,300, the price could start a steady increase towards the $1,400 level in the coming sessions.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,250 resistance, it could start another decline. An initial support on the downside is near the $1,200 level.
The next major support is near the $1,170 level, below which ether price may perhaps gain bearish momentum. In the stated scenario, the price could drop towards the $1,100 support zone in the near term. The next major support sits near the $1,000 zone.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,170
Major Resistance Level – $1,250