Ethereum is attempting an upside correction above $1,325 against the US Dollar. ETH is facing a major resistance near the $1,380 and $1,400 levels.
- Ethereum started a minor upside correction above the $1,325 level.
- The price is now trading below $1,400 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $1,355 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could recover further if there is a clear move above the $1,400 resistance zone.
Ethereum Price Recovers Slightly
Ethereum extended losses and traded below the $1,300 level. ETH traded as low as $1,281 and recently started a short-term upside correction.
There was a move above the $1,300 and $1,325 resistance levels. Ether price climbed above the 23.6% Fib retracement level of the downward move from the $1,475 swing high to $1,281 low. Besides, there was a break above a connecting bearish trend line with resistance near $1,355 on the hourly chart of ETH/USD.
The price even spiked above the $1,370 level. However, the bulls failed to gain strength above the 50% Fib retracement level of the downward move from the $1,475 swing high to $1,281 low.
Ethereum is now trading below $1,400 and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,380 level. The next major resistance is near $1,400 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
A clear break above $1,400 might send the price towards the $1,450 level. Any more gains may perhaps open the doors for a move towards the $1,480 resistance and a bearish trend line on the same chart.
Fresh Drop in ETH?
If ethereum fails to rise above the $1,400 resistance and the 100 hourly simple moving average, it could start a fresh decline. An initial support on the downside is near the $1,325 zone.
The next major support is near $1,300. The main support sits at $1,280. A downside break below the $1,280 support might another sharp decline. In the stated case, ether price might decline towards the $1,200 level in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,325
Major Resistance Level – $1,400