Ethereum shot lower after the release of the US CPI against the US dollar. ETH dipped to $1,200 before starting a sharp rise and broke above $1,300.
Ethereum trimmed all losses and climbed back above the $1,300 resistance zone. The price is now trading above $1,300 and the 100 hourly simple moving average. There was a break above a major downtrend line with resistance near $1,290 on the hourly chart of ETH/USD (data feed via Kraken). The pair appears to be seeing a steady rise above the $1,350 resistance zone.
Ethereum price jumps more than 5%
Ethereum faced a sharp drop after the US CPI data was released, similar to the price of bitcoin. ETH dipped below the $1,250 support level. It even broke down below the $1,200 level before the bulls emerged.
A low was formed near $1,188 and the price started a sharp rise. There was a rally of more than 5% above the $1,250 resistance zone. Ether price broke the 61.8% Fibonacci retracement level of the downward move from the $1306 high to $1188 low.
Furthermore, there was a break above a major downtrend line with resistance near $1,290 on the hourly chart of ETH/USD. The pair is now trading above $1,300 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $1335 level. It is close to the 1,236 Fibonacci extension level of the downward move from the $1,306 high to $1,188 low. The first major resistance is near the $1,350 level. A clear bullish break above the $1,350 resistance zone could open the doors for more gains.
Source: ETHUSD on TradingView.com
In the indicated case, the price may perhaps rally towards the $1,400 resistance. More gains could send the price towards the $1,500 resistance.
New drop in ETH?
If ethereum fails to break above the $1335 resistance, a downside correction could start. An initial support on the downside is near the $1310 level.
The next major support is near the $1,290 level and the 100 hourly simple moving average. A break below $1,290 could start a further decline to $1,250. More losses could perhaps open the doors for a move towards the $1,200 support.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now in the overbought zone.
Major Support Level: $1,290
Major resistance level: $1,335
This post Ethereum price rises and looks poised for another leg higher over $1,400
was published first on https://www.newsbtc.com/analysis/eth/ethereum-price-pumps-1400/