Ethereum remains in a range above the $ 1300 support against the US dollar. The price of ETH is expected to gain momentum above the resistance levels of $ 1,400 and $ 1,450 in the near term.
- The price of ETH traded as high as $ 1,438 and before correcting lower against the US dollar.
- Price consolidates above the support level of $ 1320 and the 100 simple moving average (4 hours).
- A key uptrend line is forming with support near $ 1295 on the ETH / USD 4 hour chart (data feed via Kraken).
- The pair is likely to accelerate higher after breaking the resistance levels of $ 1400 and $ 1430.
Ethereum Ether signals new rally
Last week, Bitcoin and Ethereum saw a steady rise above $ 1,300 and $ 35,000 respectively against the US dollar. BTC cut all of its gains, while ETH maintained a good offer above the $ 1300 support area.
The recent high formed near $ 1,438 before the price corrected lower. There was a break below the $ 1380 support level. Ether price even traded below the 23.6% Fib retracement level of the move up from $ 1,207 low to $ 1,438 high.
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Source: ETHUSD on TradingView.com
However, the price is consolidating above the support level of $ 1320 and the simple moving average of 100 (4 hours). A key bullish trendline is also forming with support near $ 1295 on the ETH / USD 4 hour chart. The trendline is near 50% of the Fibonacci retracement level of the upward movement from $ 1,207 low to $ 1,438 high.
On the upside, the price faces barriers near the $ 1,400 and $ 1,430 levels. A successful breakout above the resistance levels of $ 1,400 and $ 1,430 could open the doors to a strong rally in the coming sessions. In the case indicated, the price could test the resistance zone of $ 1,500.
Dips compatible with Ether (ETH)?
If Ethereum fails to clear the resistance levels of $ 1400 and $ 1430, it could start a downward correction. The first key support on the downside is near the $ 1300 level and the trendline.
A break down below trendline support will likely require a test of the $ 1260 support level and the 100 (4 hour) simple moving average. Any further loss could drive the price of ether towards the $ 1,200 support area.
Technical indicators
4 hour MACD – The MACD for ETH / USD is slowly losing momentum in the bullish zone.
4 hour RSI – The RSI for ETH / USD is just above the 50 level.
Major Support Level – $ 1,300
Major Resistance Level – $ 1430