Ethereum Price Resilience Gives us Pause, but Not out of Woods Yet

Ethereum jumped and tested the $1,350 resistance against the US Dollar. ETH corrected lower, but the bulls are active near the $1,280 support.

• Ethereum was able to clear the $1,300 and $1,320 resistance levels.
• The price is now trading near $1,290 and the 100 hourly simple moving average.
• There is a key bullish trend line forming with support near $1,285 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase unless there is a clear move below the $1,280 support.

Ethereum price gained pace for a steady move above the $1,300 resistance zone. ETH even surpassed the $1,320 level and settled well above the 100 hourly simple moving average.

However, the bears were active near the $1,350 zone. There were two attempts to clear the $1,350 resistance, but the bulls failed. As a result, there was a bearish reaction from $1,350, similar to bitcoin. Ether price declined below the $1,320 and $1,300 levels.

There was a clear move below the 50% Fib retracement level of the upward move from the $1,240 swing low to $1,350 swing high. The price is now trading near $1,290 and the 100 hourly simple moving average.

There is also a key bullish trend line forming with support near $1,285on the hourly chart of ETH/USD. The pair seems to be stable above the 61.8% Fib retracement level of the upward move from the $1,240 swing low to $1,350 swing high.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $1,300 level. The first major resistance is near the $1,318 and $1,320 levels. A close above the $1,320 resistance might start a fresh increase. The next major resistance could be $1,350. Any more gains might send the price towards the $1,400 resistance zone.

If ethereum fails to climb above the $1,320 resistance, it could continue to move down. An initial support on the downside is near the $1,285 level and the trend line.

The next major support is near the $1,280 level, below which the price could gain bearish momentum towards the $1,240 support. Any more losses could lead the price towards the $1,200 support.

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 – $1,280

Major Resistance Level – $1,320