Ethereum gained pace above the $1,300 level against the US Dollar, but it struggled near $1,375. ETH price is approaching a major support and it is likely to bounce back above $1,350.
- Ethereum faced a strong selling interest near $1,375 and corrected lower.
- The price is approaching the $1,300 support zone and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $1,305 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could test $1,292 before it starts a fresh increase towards $1,350 and $1,375 in the near term.
Ethereum Price is Testing Key Support
After trading as low as $1,207, Ethereum started a fresh increase. ETH price traded above the $1,250 and 1,265 resistance levels to move into a positive zone.
There was also a clear break above the key $1,300 resistance and the 100 hourly simple moving average. The price even cleared a major bearish trend line with resistance near $1,300 on the hourly chart. As a result, there was a push above the $1,350 level, but ether again failed to clear the $1,375 resistance.
A high is formed near $1,376 and the price is currently correcting lower. It broke the 23.6% Fib retracement level of the recent wave from the $1,207 swing low to $1,376 high.
Source: ETHUSD on TradingView.com
The price is now approaching the $1,300 support zone and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $1,305 on the hourly chart of ETH/USD. The next major support is near the $1,292 level.
The 50% Fib retracement level of the recent wave from the $1,207 swing low to $1,376 high is at $1,292 to provide support. Any more losses could clear the path for a push towards the $1,250 support zone.
Fresh Increase in ETH?
If Ethereum stays above the $1,292 support zone, it could start a fresh increase. An initial resistance on the upside is near the $1,325 level. The first major resistance is near the $1,350 level.
The main resistance is still near the $1,375 level, above which ether price could test $1,400. Any more gains could open the doors for a run towards the $1,500 level in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just below the 50 level.
Major Support Level – $1,292
Major Resistance Level – $1,375