Ethereum broke the $1,200 resistance to move into a bullish zone against the US Dollar. ETH price is showing positive signs and it is likely to continue higher above $1,300 and $1,400.
- ETH price is gaining bullish momentum above the $1,200 pivot level against the US Dollar.
- The price is facing hurdles near $1,280, but it is well above the 100 simple moving average (4-hours).
- There was a break above a major contracting triangle with resistance near $1,215 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher towards $1,400 and $1,500 in the coming days.
Ethereum’s Ether Could Rally Further
This past week, bitcoin and ethereum saw a fresh increase above $1,150 and $35,000 respectively against the US Dollar. ETH price even surpassed the $1,200 resistance zone and settled well above the 100 simple moving average (4-hours).
The upward move was such that there was a break above a major contracting triangle with resistance near $1,215 on the 4-hours chart of ETH/USD. Ether price traded as high as $1,292 before correcting lower.
There was a break below the $1,240 level. The price traded below the 23.6% Fib retracement level of the recent increase from the $1,066 swing low to $1,292 high. However, the broken triangle resistance is acting as a strong support near the $1,200 zone.
Source: ETHUSD on TradingView.com
The next major support is near the $1,180 level. It is close to the 50% Fib retracement level of the recent increase from the $1,066 swing low to $1,292 high.
On the upside, the price is facing a short-term resistance near the $1,280 level. A clear break above the $1,280 and $1,300 resistance levels could open the doors for a larger increase. In the stated case, ether price might even surpass $1,400 and trade to a new all-time high in the near term.
Dips Supported in Ether (ETH)?
If Ethereum fails to clear the $1,280 and $1,300 resistance levels, it could start a downside correction. The first key support on the downside is near the $1,180 level.
The main support is forming near the $1,150 level (the recent breakout zone). Any more losses could lead the price towards $1,050 and the 100 simple moving average (4-hours).
4 hours MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is well above the 50 level.
Major Support Level – $1,180
Major Resistance Level – $1,280