Ethereum Rallies 8%, Why ETH Could Surge Above $1,300
Ethereum gained pace and cleared the $1,200 zone against the US Dollar. ETH is up 8% and might continue to climb higher towards $1,300 or $1,320.
- Ethereum extended gains and climbed above the $1,200 resistance zone.
- The price is now trading above $1,200 and the 100 hourly simple moving average.
- There is a crucial bullish trend line forming with support near $1,210 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it stays above the key $1,200 support zone.
Ethereum Price Gains Momentum
Ethereum remained well supported above the $1,120 level. The price started a fresh increase and was able to clear a major hurdle near the $1,150 level.
It opened the doors for a sharp increase above the $1,200 level. Ether price even broke the $1,250 level and traded to a new monthly high at $1,276. It is now trading above $1,200 and the 100 hourly simple moving average.
The price is testing the 23.6% Fib retracement level of the recent increase from the $1,162 swing low to $1,276 high. There is also a crucial bullish trend line forming with support near $1,210 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $1,275 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,320 zone, above which the price may perhaps gain strength. In the stated case, the price could rise towards the $1,350 resistance. If the bulls remain in action, the price might climb towards the $1,420 zone.
Dips Limited in ETH?
If ethereum fails to rise above the $1,275 resistance, it could start a downside correction. An initial support on the downside is near the $1,230 zone. The next major support is near the $1,210 zone. It is close to the 50% Fib retracement level of the recent increase from the $1,162 swing low to $1,276 high.
A downside break below the $1,210 support may perhaps send the price towards the 100 hourly simple moving average or $1,160. If the price fails to stay above the 100 hourly SMA, it could even slide towards the $1,120 level.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $1,210
Major Resistance Level – $1,275