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TA: Ethereum Tops Near $1,200, Why Dips Could Be Attractive

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Ethereum started an upside correction above the $1,050 zone against the US Dollar. ETH traded close to the $1,200 resistance zone before it faced sellers.

  • Ethereum started an upside correction above the $1,100 resistance zone.
  • The price is now trading below $1,150 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $1,180 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could revisit the key $1,050 and $1,040 support levels in the near term.

Ethereum Price Corrects Lower

Ethereum was able to climb above the $1,050 resistance zone. ETH even recovered above the $1,120 resistance zone and settled above the 100 hourly simple moving average.

Finally, the price surpassed the $1,150 resistance and traded close to the $1,200 level. A high was formed near $1,192 before the bears appeared. Ether price failed to continue higher and traded below the $1,150 level.

There was a break below the 23.6% Fib retracement level of the upward move from the $880 swing low to $1,192 high. Besides, there was a break below a key bullish trend line with support near $1,180 on the hourly chart of ETH/USD.

Ether price is now trading below $1,150 and the 100 hourly simple moving average. An immediate resistance is near the $1,120 level. The next major resistance is near the $1,150 zone. A clear move above the $1,150 resistance zone may perhaps push the price towards $1,200.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,250 level. Any more gains could start a move towards the $1,320 resistance in the near term.

More Losses in ETH?

If ethereum fails to rise above the $1,120 resistance, it could continue to move down. An initial support on the downside is near the $1,060 zone.

The next major support is near the $1,050 zone. It is near the 50% Fib retracement level of the upward move from the $880 swing low to $1,192 high. Any more losses might call for a move towards the $1,000 support zone.
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Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,050

Major Resistance Level – $1,150

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