Ethereum Price Won’t Go Down Quietly: Risk of Bounce Grows

Ethereum is forming a base above the $1,265 level against the US Dollar. ETH could start a steady increase if there is a clear move above the $1,300 resistance zone.

• Ethereum is holding the main breakdown support at $1,265.
• The price is now trading below $1,310 and the 100 hourly simple moving average.
• There is a new connecting bearish trend line forming with resistance near $1,295 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent upward move if there is a clear move above $1,300 and $1,320.

Ethereum Price Remains Supported

Ethereum attempted a fresh increase above the $1,300 level, similar to bitcoin price. ETH struggled to gain pace for a move above the $1,320 level.

The price traded as high as $1,310 and started a fresh decline. There was a move below the $1,300 support zone. It retested the $1,265 support zone. A low is formed near $1,270 and the price is now consolidating losses. Ether price is now trading below $1,310 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,290 level. It is near the 50% Fib retracement level of the downward move from the $1,310 swing high to $1,270 low.

Source: ETHUSD on TradingView.com

The first major resistance is near the $1,295 level and the 100 hourly simple moving average. There is also a new connecting bearish trend line forming with resistance near $1,295 on the hourly chart of ETH/USD. A clear upside break above the $1,300 resistance zone could open the doors for a move towards the $1,320 level. The main resistance is still near the $1,350 level, above which ether price could start a strong increase.

Major Drop in ETH?

If ethereum fails to climb above the $1,300 resistance, it could continue to move down. An initial support on the downside is near the $1,270 level.

The next major support is near the $1,265 level. A downside break below the $1,265 zone might start a fresh decline to $1,220. Any more losses may perhaps push the price further lower towards the $1,200 support.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,265

Major Resistance Level – $1,300

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