Ethereum holds great support near $ 1,150 against the US dollar. The ETH price is consolidating and should prepare for a major uptrend above USD 1,250
- Ethereum faces some major hurdles near $ 1,245 and $ 1,250.
- The price should stay well bid above $ 1,150 and close to the 100-hour simple moving average.
- A major contraction triangle is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 1,195.
- The pair is likely to outperform Bitcoin unless there is a significant break below the USD 1,150 support zone.
Support for Ethereum Price Holding Key
In the last 2-3 sessions, Ethereum made two attempts to gain strength above $ 1,250 and $ 1,280. ETH price failed to stabilize above $ 1,250, peaked near $ 1,270, and recently started a new decline.
There was a pause below the $ 1,225 and $ 1,220 support levels. Ether price was even below the $ 1,200 level, testing the simple 100-hour moving average. A low is being formed near the $ 1,184 level and is currently consolidating near the $ 1,195 level.
It appears that a major contraction triangle is forming on the hourly chart of ETH / USD with support near USD 1,195. Initial resistance to the upside is near the $ 1,225 level. It is close to the 50% Fib retracement level of the recent decline from the high of $ 1,270 to the low of $ 1,184.
Source: ETHUSD on TradingView.com
The first major resistance is near the $ 1,250 level. It coincides with the 76.4% fib retracement level of the recent decline from the high of $ 1,270 to the low of $ 1,184. If the ether price breaks the $ 1,250 resistance and the upper trendline of the triangle, there is a possibility of a sharp rise.
The next major resistance is near the $ 1,280 level. A close above $ 1,280 will most likely open the doors to a strong rally above $ 1,300 and $ 1,350.
Dips supported at ETH?
If Ethereum corrects below the triangle trendline and at USD 1,192, it could find strong support near the USD 1,150 level (a multi-touch zone).
A downward break and a close below the $ 1,150 support level could potentially trigger a sharp decline towards $ 1,100. However, ether looks stable above $ 1,150 while Bitcoin is showing bearish signs below $ 35,500 and $ 36,000.
Hourly MACD – – The MACD for ETH / USD is slowly gaining pace in the bearish zone.
Hourly RSI – – The RSI for ETH / USD is still below the 50 level.
Main support tier – $ 1,150
Main Resistance Level – $ 1,250