Ethereum nears $1,200, why a dip could be attractive

Ethereum started an upside correction against the US dollar above $1,050. ETH is trading near the $1,200 resistance zone before facing sellers.

  • Ethereum started an upward correction above the $1,100 resistance.
  • The price is now trading below $1,150 and the 100 hourly simple moving average.
  • There was a break above 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 is able to climb $1,050 resistance zone. ETH even recovered above the $1,120 resistance and settled above the 100 hourly simple moving average.

Finally, the price broke the $1,150 resistance and approached the $1,200 level. A high was formed near $1,192 before the bears emerged. Ether price failed to move higher and fell below $1,150.

There was a break below the 23.6% Fib retracement level of the $880 swing low to $1,192 high. Additionally, 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 below $1,150, while 100 hourly simple moving average. Immediate resistance is near $1,120. The next major resistance is near $1,150. A clear break above the $1,150 resistance zone could propel the price towards $1,200.

Source: ETHUSD on TradingView.com

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

ETH to lose more?

If Ethereum fails to break the $1,120 resistance, it could continue to decline. Initial support on the downside is near $1,060.

The next major support is near $1,050. It is near the 50% Fib retracement level from the $880 swing low to $1,192 high. More losses may require a move towards the $1,000 support area.
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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 – $1,050

Major Resistance – $1,150

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