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The Ethereum price recovery could soon fade if ETH fails to cross USD 1,250

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Ethereum started a decent recovery wave above USD 1,180 against the US dollar. If ETH stays below the $1,250 resistance, it could start another drop.

  • Ethereum struggled to gain momentum above the USD 1,230 resistance.
  • The price is now trading above $1,170 and 100 simple hourly moving averages.
  • A short term bullish flag is forming with resistance near $1,200 on the ETH/USD hourly chart (data feed via Kraken).
  • If there is no clear move above USD 1,230 and USD 1,250, the pair could start a fresh decline.

Ethereum is facing price rejection

Ethereum price started a recovery wave above the $1,150 resistance similar to bitcoin. ETH also climbed above the $1,200 resistance and settled above the 100 hourly moving average.

However, there was no test of the $1,230 resistance area. Ether price traded near a high of $1,215 and is currently correcting gains. There was a small decline below the $1,200 level. It is now approaching the 23.6% Fibonacci retracement level of the upward move from $1,073 swing low to $1,215 high.

It is now trading above $1,170 and 100 simple hourly moving averages. A near-term bullish flag is also forming with resistance near $1,200 on the ETH/USD hourly chart. On the upside, an immediate resistance is near the $1,200 level and the channel trendline.

Source: ETHUSD at TradingView.com

The next major resistance is near the $1,230 level. A major breakout zone is near the $1,250 level. For a move into the positive zone, the price must consolidate above $1,250. In the said case, the Ether price is likely to rise towards the $1,320 resistance area. Any further gains could open the doors for a test of the $1,400 resistance area.

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New drop in ETH?

If Ethereum fails to climb above the USD 1,230 resistance, it could start a fresh decline. An initial support on the downside is near the $1,170 level and the 100 hourly simple moving average.

The next key support is near the $1,150 level or the 50% Fib retracement level from the $1,073 low to $1,215 high, below which the ether price could be trading with bearish momentum. In the indicated scenario, the price could fall towards the $1,070 support area.

technical indicators

per hour mac , The MACD for ETH/USD is now gaining momentum in the bearish zone.

hourly rsi , The RSI for ETH/USD is now well below the 50 level.

Main Support Level – $1,150

Main resistance level – $1,230

source: newsbtc.com

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