Ethereum was able to clear the $1,240 resistance zone against the US Dollar. ETH is showing positive signs and there might be a move above the $1,300 resistance.

Ethereum is moving higher above the $1,220 and $1,240 resistance levels.
The price is now trading above $1,220 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 rise further if there is a clear move above the $1,300 resistance.

Ethereum Price Gains Bullish Momentum

Ethereum price formed a base above the $1,200 level. ETH started a decent increase and was able to clear the $1,220 resistance zone, similar to bitcoin.

There was a break above a key contracting triangle with resistance near $1,215 on the hourly chart of ETH/USD. It opened the doors for a move above the $1,250 resistance zone. The price tested the $1,270 zone and a high is formed near $1,271.

Ether price is now trading above $1,220 and the 100 hourly simple moving average. It is now correcting gains below $1,260. There was a move below the 23.6% Fib retracement level of the recent increase from the $1,204 swing low to $1,271 high.

Source: ETHUSD on TradingView.com

An immediate resistance is near the $1,260 level. The next major resistance is near the $1,275 level. A clear move above the $1,275 resistance could another upward move. In the stated case, the price may perhaps rise towards the $1,300 resistance. The next major resistance could be $1,350, above which the price could surge towards the $1,420 resistance zone.

Dips Limited in ETH?

If ethereum fails to clear the $1,275 resistance, it could correct further lower. An initial support on the downside is near the $1,240 level.

The next major support is near the $1,230 level. It is near the 50% Fib retracement level of the recent increase from the $1,204 swing low to $1,271 high. A downside break below $1,230 might send the price towards the $1,220 support. Any more losses might call for a test of the $1,200 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 – $1,230

Major Resistance Level – $1,275

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Filed under: Bitcoin - @ January 5, 2023 2:37 am