Ethereum is consolidating gains above the $1,300 zone against the US Dollar. ETH could gain pace if there is a clear move above the $1,370 zone.
- Ethereum is showing positive signs above the $1,320 and $1,330 levels.
- The price is now trading above $1,320 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $1,350 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could rally if there is a clear move above $1,350 and $1,370.
Ethereum Price Remains Supported
Ethereum gained pace after it broke the $1,300 and $1,320 resistance levels. ETH even cleared the $1,350 level and settled above the 100 hourly simple moving average.
However, the price failed to clear the $1,370 level. A high was formed near $1,370 before there was a downside correction. There was a move below the $1,350 level. Ether price declined below the 23.6% Fib retracement level of the upward wave from the $1,250 swing zone to $1,370 high.
It is now trading above $1,320 and the 100 hourly simple moving average. There is also a key contracting triangle forming with resistance near $1,350 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $1,350 level and the triangle trend line. The first major resistance is near the $1,365 and $1,370 levels. The main barrier is still near the $1,400 zone. A clear upside break above the $1,400 resistance zone could open the doors for a strong increase. In the stated case, the price might climb towards the $1,500 level.
Dips Supported in ETH?
If ethereum fails to climb above the $1,350 resistance, it could continue to move down. An initial support on the downside is near the $1,320 level.
The next major support is near the $1,310 level and the $1,300 zone. It is near the 50% Fib retracement level of the upward wave from the $1,250 swing zone to $1,370 high. A downside break below the $1,300 zone might start a fresh decline to $1,270 in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,320
Major Resistance Level – $1,370