Ethereum price faces a tough challenge. Can the bulls save the day?

Ethereum is attempting an upward correction above $1,325 against the US dollar. ETH is facing significant resistance near $1,380 and $1,400.

• Ethereum has started a minor correction above the $1,325 levels.
• The price is currently trading below $1,400 and the 100 hour simple moving average.
• On the ETH/USD hourly chart (data feed via Kraken), the pair has broken out of the bearish trendline with resistance near $1,355.
• A clear move above the $1,400 resistance zone could give the pair a further rally.

Ethereum Price Recovers Slightly

Ethereum widened its losses and traded below $1,300. ETH he traded to $1,281 and recently started a short-term upward correction.

It has crossed the $1,300 and $1,325 resistance levels. Ether price rose above the 23.6% Fib retracement level from a high of $1,475 to a low of $1,281. Furthermore, on the ETH/USD hourly chart, it has broken above the bearish trend line with resistance near $1,355.

The price soared above $1,370. However, the bull failed to gain strength above the 50% Fib retracement level as he descended from the high of $1,475 to the low of $1,281.

Ethereum is currently trading below $1,400 and the 100-hour simple moving average. On the upside, the price is facing resistance near his $1,380 level. The next major resistance is near $1,400 and the 100 hour simple moving average.

Source: ETHUSD on TradingView.com

A clear break above $1,400 could push the price closer to $1,450. Any further gains could open the door to resistance at $1,480 and a move to the bearish trendline on the same chart.

Fresh drop of ETH?

If Ethereum fails to break out of the $1,400 resistance and the 100-hour simple moving average, a new drop could start. The first support on the downside is near $1,325.

The next major support is near $1,300. The main support is $1,280. A break below the $1,280 support is likely to lead to another sharp decline. In the aforementioned case, Ether price is likely to drop towards he $1,200 levels in the near future.

technical indicators

Hourly MACD – The ETH/USD MACD is currently gaining momentum in the bearish zone.

Hourly RSI – The ETH/USD RSI is currently above the 50 level.

Major Support Level – $1,325

Major Resistance Level – $1,400