Ethereum faced a strong rejection near $1,300 against the US Dollar. ETH is declining, but there is a major support waiting near $1,240 and $1,220.
- Ethereum struggled to clear the $1,295 and $1,300 resistance levels.
- The price is now trading below $1,260 and the 100 hourly simple moving average.
- There was a break below a key contracting triangle with support at $1,270 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now approaching a major support at $1,240 and $1,220.
Ethereum Price Remains Supported
Ethereum price attempted a decent increase above the $1,260 level. ETH climbed above the $1,280 level, but it faced a strong rejection near the $1,300 level.
As a result, the price started a fresh decline from the $1,292 high, similar to bitcoin. There was a clear move below the $1,270 and $1,260 support levels. Ether price declined below the 50% Fib retracement level of the upward move from the $1,219 swing low to $1,292 high.
Besides, there was a break below a key contracting triangle with support at $1,270 on the hourly chart of ETH/USD. The pair is now trading below $1,260 and the 100 hourly simple moving average.
It is approaching the $1,240 support zone. It is near the 76.4% Fib retracement level of the upward move from the $1,219 swing low to $1,292 high. An immediate resistance on the upside is near the $1,255 level. The first major resistance is near the $1,265 zone and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
A close above the $1,265 resistance might send the price towards the $1,300 resistance zone, above which ether price could gain bullish momentum. The next major resistance could be $1,340. Any more gains might send the price towards the $1,400 resistance zone.
More Losses in ETH?
If ethereum fails to climb above the $1,265 resistance, it could continue to move down. An initial support on the downside is near the $1,240 level.
The next major support is near the $1,220 level. If there is a break and close below $1,220, the price could revisit the $1,200 support. Any more losses could lead the price towards the $1,165 support.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now in the oversold zone.
Major Support Level – $1,220
Major Resistance Level – $1,265
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Author: Aayush Jindal