Ethereum started a downside correction from the $1,300 resistance against the US Dollar. ETH must clear the $1,275 level to start a fresh increase.
Ethereum is holding the $1,240 support and is currently consolidating near $1,260.
The price is now trading below $1,275 and the 100 hourly simple moving average.
There was a break above a short-term contracting triangle with resistance near $1,255 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct start a fresh increase if there is a clear move above the $1,275 level.
Ethereum Price Holds Support
The price declined below the $1,255 support zone and the 100 hourly simple moving average. However, the bulls were active above the $1,240 level. A low was formed near $1,241 and the price is now correcting losses. There was a move above the 23.6% Fib retracement level of the recent drop from the $1,304 swing high to $1,241 low.
Besides, there was a break above a short-term contracting triangle with resistance near $1,255 on the hourly chart of ETH/USD. Ether price is now trading below $1,275 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $1,275 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent drop from the $1,304 swing high to $1,241 low.
Source: ETHUSD on TradingView.com
A close above the $1,275 resistance might start a fresh increase. The next major resistance is near the $1,300 level, above which ether price could gain bullish momentum for a move to $1,350. Any more gains might send the price towards the $1,400 resistance zone.
More Losses in ETH?
If ethereum fails to start another increase above the $1,275 resistance, it could continue to move down. An initial support on the downside is near the $1,240 level.
The next major support is near the $1,220 level. If there is a break and close below $1,220, the price could even drop towards the $1,165 support. Any more losses could lead the price towards the $1,100 support.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,240
Major Resistance Level – $1,275