Ethereum Price Key Trend is Forming and Swift Recovery Could Occur

Ethereum is attempting an upside break above the $1,230 resistance against the US Dollar. ETH could start a strong increase if it settles above the $1,230 and $1,250 resistance levels.

  • Ethereum tested the $1,180 level and climbed higher sharply.
  • The price is now trading above $1,200 and the 100 hourly simple moving average.
  • There was a break above a key contracting triangle with resistance near $1,215 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could gain bullish momentum if there is a clear move above $1,230 and $1,250.

Ethereum Price Eyes Fresh Rally

Ethereum price started a downside correction from the $1,230 resistance zone. ETH spiked below the $1,200 support zone and the 100 hourly simple moving average.

However, the bulls were active above the $1,160 support zone. A low was formed near $1,180 and the price climbed higher sharply, similar to bitcoin. There was a strong move above the $1,200 level. Besides, there was a break above a key contracting triangle with resistance near $1,215 on the hourly chart of ETH/USD.

Ether price is now trading above $1,200 and the 100 hourly simple moving average. It is now trading just below the 23.6% Fib retracement level of the recent wave from the $1,180 swing low to $1,237 high.

An immediate resistance is near the $1,230 level. The next major resistance is near the $1,250 level. A clear upside break above the $1,250 resistance could start a strong upward move. In the stated case, the price may perhaps rise towards the $1,300 resistance.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance could be $1,350. If the bulls clear the $1,350 resistance, the price might rise towards $1,400. Any more gains might send the price towards the $1,500 resistance zone.

Fresh Drop in ETH?

If ethereum fails to climb above the $1,250 resistance, it could start another drop. An initial support on the downside is near the $1,210 level and the 100 hourly simple moving average.

The next major support is near the $1,200 level. It is close to the 61.8% Fib retracement level of the recent wave from the $1,180 swing low to $1,237 high. A downside break below $1,200 might spark a move towards the $1,150 support. Any more losses could lead the price towards the $1,100 zone.

Technical Indicators

Hourly MACD The MACD for ETH/USD is now losing momentum in the bullish zone.

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

Major Support Level – $1,200

Major Resistance Level – $1,230

Ethereum Price Key Trend is Forming and Swift Recovery Could Occur Ethereum Price Key Trend is Forming and Swift Recovery Could Occur Reviewed by Eugene D on December 22, 2022 Rating: 5

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