Ethereum Price Momentum Above $1,320: Here’s Why Bulls Are Comfortable
Ethereum started a consolidation phase above the $1,300 level against the US Dollar. ETH could start a fresh increase if there is a clear move above $1,350.
- Ethereum recovered above $1,300 and started a consolidation phase.
- The price is now trading above $1,310 and the 100 hourly simple moving average.
- There is a key declining channel forming with resistance near $1,340 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if there is a clear move above the $1,350 resistance zone.
Ethereum Price Eyes Upside Break
Ethereum started a steady recovery wave above the $1,300 resistance zone. The bulls were active above the $1,300 level and ETH settled into a short-term positive zone.
There was a clear move above the 50% Fib retracement level of the key decline from the $1,400 swing high to $1,252 low. Ether price even spiked above the $1,340 resistance, but upsides were limited. It is now trading above $1,310 and the 100 hourly simple moving average.
There is also a key declining channel forming with resistance near $1,340 on the hourly chart of ETH/USD. On the upside, the price is facing resistance near the $1,340 and $1,350 levels.
The next major resistance is near $1,364 level. It is near the 76.4% Fib retracement level of the key decline from the $1,400 swing high to $1,252 low. A clear break above $1,364 might start a decent increase towards the $1,400 level.
Source: ETHUSD on TradingView.com
Any more gains may perhaps open the doors for a move towards the $1,450 resistance zone, above which the price could surge to $1,500.
Fresh Decline in ETH?
If ethereum fails to climb above the $1,340 resistance, it could start a fresh decline. An initial support on the downside is near the $1,310 level.
The next major support is near the $1,290 level and the channel lower trend line. A downside break below the $1,290 level might send the price towards the $1,265 support in the near term. Any more losses could increase selling and the price might drop to $1,250 or even towards $1,220.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just above the 50 level.
Major Support Level – $1,290
Major Resistance Level – $1,350