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Ethereum corrected lower and tested the $1,250 support zone against the US Dollar. ETH price is consolidating above $1,280 and it looks set for a fresh increase in the near term.
- Ethereum is holding gains above the $1,250 and $1,280 support levels.
- The price is currently correcting lower from $1,385, but it is above the 100 hourly simple moving average.
- There is a crucial contracting triangle forming with support near $1,275 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct again, but it is likely to remain well bid above the $1,250 and $1,275 support levels.
Ethereum Price is Holding Key Support
Yesterday, we saw a downside correction in Ethereum below the $1,350 and $1,300 support levels. ETH price even spiked below the $1,280 support level and the 100 hourly simple moving average.
It tested the $1,250 support zone and recovered 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.
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.
Source: ETHUSD on TradingView.com
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.
Dips Supported in ETH?
If ethereum struggles to remains stable above $1,300, it could correct further. An 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 ether fails to stay above the $1,250 support, it could decline 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
