Ethereum found support near $1,070 and recovered above $1,150 against the US Dollar. ETH may rise further, but the bulls may encounter hurdles near $1,200 and $1,230.
- Ethereum started an upward correction from the $1070 and $1080 support levels.
- The price is now trading above $1,120 and the 100 hourly simple moving average.
- There was a break above a major bearish trendline with resistance near $1,140 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rise further towards $1,200 or even $1,230 in the near term.
Ethereum price recovers
Ethereum price remained well bid near the latest low at $1,070, similar to bitcoins. ETH formed a base above the $1070 and $1080 levels before beginning an upward correction.
There was a decent wave of recovery above the $1120 and $1140 resistance levels. Ether price jumped above the 50% Fib retracement level of the key decline from the $1,232 high to $1,073 low. Additionally, there was a break above a major downtrend line with resistance near $1,140 on the hourly chart of ETH/USD.
The price is now trading above $1,120 and the 100 hour simple moving average. An immediate resistance on the upside is near the $1,170 level. It is near the 61.8% Fib retracement level of the key swing decline from the $1,232 swing low to $1,073 low.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,200 level. A clear break above the $1,200 resistance could send the price towards the $1,230 resistance zone. Any further gains could open the doors for a test of the $1,300 resistance zone.
New decline of ETH?
If Ethereum fails to break above the $1,200 resistance, it could start a fresh decline. An initial support on the downside is near the $1,150 level and the 100 hourly simple moving average.
The next major support is near the $1,120 level, below which the Ether price could possibly drop further. In the given scenario, the price might decline towards the $1,070 support zone in the near term. Any further losses may require a move towards the main $1000 support in the coming sessions.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,120
Major resistance level – $1,200