Ethereum Price Won’t Go Down Quietly: Risk of Bounce Grows
Ethereum is forming a base above the $1,265 level against the US Dollar. ETH could start a steady increase if there is a clear move above the $1,300 resistance zone.
Ethereum is holding the main breakdown support at $1,265.
The price is now trading below $1,310 and the 100 hourly simple moving average.
There is a new connecting bearish trend line forming with resistance near $1,295 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a decent upward move if there is a clear move above $1,300 and $1,320.
Ethereum Price Remains Supported
Ethereum attempted a fresh increase above the $1,300 level, similar to bitcoin price. ETH struggled to gain pace for a move above the $1,320 level.
The price traded as high as $1,310 and started a fresh decline. There was a move below the $1,300 support zone. It retested the $1,265 support zone. A low is formed near $1,270 and the price is now consolidating losses. Ether price is now trading below $1,310 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $1,290 level. It is near the 50% Fib retracement level of the downward move from the $1,310 swing high to $1,270 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $1,295 level and the 100 hourly simple moving average. There is also a new connecting bearish trend line forming with resistance near $1,295 on the hourly chart of ETH/USD. A clear upside break above the $1,300 resistance zone could open the doors for a move towards the $1,320 level. The main resistance is still near the $1,350 level, above which ether price could start a strong increase.
Major Drop in ETH?
If ethereum fails to climb above the $1,300 resistance, it could continue to move down. An initial support on the downside is near the $1,270 level.
The next major support is near the $1,265 level. A downside break below the $1,265 zone might start a fresh decline to $1,220. Any more losses may perhaps push the price further lower towards the $1,200 support.
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 – $1,265
Major Resistance Level – $1,300