By Solomon Odunayo
Ethereum (ETH) retraced and tested the $1,250 support zone against the USD. The price of ETH is consolidating above $1,280. The second-largest cryptocurrency by market cap looks ready for a fresh rally in the near term.
Ethereum (ETH) Price Is Maintaining Key Support
About 24 hours ago, there was a downside correction in Ethereum below the $1,350 and $1,300 support levels. The price of the digital currency even dropped below the $1,280 support level and the 100 hourly simple moving average.
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ETH tested the $1,250 support area but recovered quickly and steadily above $1,300. There was a break above the $1,350 resistance and a close above the 100 hourly simple moving average. However, ether price failed to surpass the $1,400 resistance zone.
Source: ETHUSD on TradingView.com
A high was formed near $1,388 and the price is currently correcting lower. It is testing the 50% Fib retracement level of the upward wave from the $1,251 swing low to $1,388 high. There is also a crucial contracting triangle forming with support near $1,275 on the hourly chart of ETH/USD.
The triangle support is close to the 76.4% Fib retracement level of the upward wave from the $1,251 swing low to $1,388 high. On the upside, the triangle resistance is near the $1,360 and $1,365 levels.
The main resistance is near the $1,385 and $1,400 levels. A successful close above the $1,400 resistance could open the doors for a fresh surge towards the $1,450 and $1,480 levels.
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Dips Supported in Ethereum (ETH)?
If Ethereum (ETH) struggles to remain stable above $1,300, it could correct further. Initial support on the downside is near the $1,280 level and the triangle trend line.
The main support is now forming near the $1,250 level. If ETH fails to stay above the $1,250 support, it could drop further towards the $1,180 and $1,165 support levels.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently close to the 50 level.
Major Support Level – $1,280
Major Resistance Level – $1,380