Why Dips Could Be Limited

Why Dips Could Be Limited

Ethereum saw a neat surge above $ 1,080 but again failed near $ 1,150 against the US dollar. ETH price is consolidating and could make another attempt to clear $ 1,150.

  • Ethereum is still struggling to clear the main $ 1,150 resistance zone.
  • The price is now trading near the $ 1,100 zone and the 100-hour simple moving average.
  • An important ascending channel is forming on the hourly chart of ETH / USD (data feed via Kraken) with support near USD 1,100.
  • The pair could soon make another attempt to hit the $ 1,150 resistance level in the short term.

Ethereum price test Key Pivot Zone

There has been a decent rally in Bitcoin, Ethereum, Ripple, and other altcoins. ETH price formed a support base above the $ 1,000 level and rebounded above the $ 1,050 level.

There was also a break above a major bearish trendline with resistance near USD 1,060 on the ETH / USD hourly chart. It opened the doors to further gains above the $ 1,100 level and the 100 hour simple moving average. Ether rose above the $ 1,120 resistance, but found it difficult to clear the $ 1,150 resistance again.

A high is being formed near the $ 1,147 level and the price is currently correcting lower. It broke the $ 1,120 level and tested the 23.6% fib retracement level of the recent wave from $ 983 to $ 1,147.

Source: ETHUSD on TradingView.com

It is now trading near the USD 1,100 zone and the 100-hour simple moving average. There is also a major upstream channel forming with support near USD 1,100 on the same chart. If there is a downside pause below the channel support, the price could fall towards the USD 1,065 support zone.

The 50% Fib retracement level of the latest wave from the $ 983 low to the $ 1,147 high is also near $ 1,065. The next major support is near the $ 1,045 level below which the price could hit $ 1,000 again.

Upward pause at ETH?

If Ethereum stays above channel support, it could rise above $ 1,120. In the said case, another attempt could be made to hit the USD 1,150 resistance level.

A closing price above the $ 1,150 level with adequate follow-through could trigger a sharp spike. The next hurdle for the bulls above the USD 1,150 zone is near the USD 1,240 level.

Technical indicators

Hourly MACD – – The MACD for ETH / USD is struggling to gain pace in the bullish zone.

Hourly RSI – – The RSI for ETH / USD is moving towards 50.

Main support tier – $ 1,065

Main Resistance Level – $ 1,150

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