Ethereum faced a strong rejection near $1,300 against the US Dollar. ETH is declining, but there is 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 important support at $1,240 and $1,220.
Ethereum price remains supported
Ethereum price attempted a decent rise above the $1,260 level. ETH broke above the $1,280 level but faced strong rejection near the $1,300 level.
As a result, the price started a new decline from the high of $1292, similar to bitcoins. There was a clear move below the $1,270 and $1,260 support levels. Ether price dipped below the 50% Fibonacci retracement level of the up move from the $1,219 low to $1,292 high.
Additionally, 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 close to the 76.4% Fibonacci retracement level of the up move from the $1,219 low to $1,292 high. An immediate resistance to the upside is near the $1255 level. The first major resistance is near the $1,265 zone and the 100 hourly simple moving average.
Font: ETHUSD on TradingView.com
A close above the $1,265 resistance could send the price towards the $1,300 resistance zone, above which Ether price could gain bullish momentum. The next big resistance could be at $1,340. More gains could send the price towards the $1,400 resistance zone.
More losses in ETH?
If ethereum fails to break above the $1,265 resistance, it could continue lower. An initial support on the downside is near the $1240 level.
The next big support is near the $1,220 level. If there is a break and close below $1,220, the price could return to the support of $1,200. Further losses could push the price towards the $1,165 support.
technical indicators
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now in the oversold zone.
Major Support Level: $1,220
Highest Resistance Level: $1,265
