Ethereum Avoids Major Downtrend, Significant Bullseye Breakout

Ethereum has initiated an upward correction above $1,250 against the US dollar following the rise of XRP. ETH could pick up some bullish momentum once it clears the $1,400 resistance.

• Ethereum has started a wave of recovery above the $1,250 and $1,300 levels.
• The price is currently trading above $1,300 and the 100 hour simple moving average.
• The ETH/USD hourly chart (data feed via Kraken) has formed a major bearish trendline with resistance near $1,385.
• The pair could rally further, clearing the key $1,400 resistance zone.

Ethereum price recovers

Ethereum managed to break out of the $1,220 support zone. ETH has started an upward correction above the $1,250 level after Ripple’s xrp started a strong rally.

Ether price managed to clear the resistance levels of $1,260 and $1,280. There was a break above the 50% Fib retracement level of the downward movement from swing highs of $1,420 to lows of $1,220. It is currently trading above $1,300 and the 100 hour simple moving average.

The price appears to be trading in the plus zone above $1,320. On the upside, the price is facing resistance near $1,380.

A major bearish trend line has also formed on the ETH/USD hourly chart with resistance near $1,385. Near the retracement level.

Source: ETHUSD on TradingView.com

The next major resistance is near $1,400. A clear breakout of $1,400 could start a decent rally towards the $1,450 levels. Any further gains could open the door for a move towards the $1,500 resistance.

Another drop in ETH?

If Ethereum fails to recover above the $1,400 resistance, a new drop could begin. Initial support on the downside is near $1,330 and the 100-hour simple moving average.

The next major support is near $1,288. A break below the $1,288 support is likely to lead to another plunge. In the aforementioned case, the Ether price could drop to $1,220 in the near future. Any more losses could increase selling and the price could fall to $1,150.

technical indicator

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

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

Major Support Level – $1,288

Major Resistance Level – $1,400