TA: Ethereum Prints Bullish Break: Why ETH Could Surge Above $1,200January 6, 2021
Ethereum started a fresh increase above $1,050 against the US Dollar. ETH price is showing positive signs and it is likely to continue higher towards the $1,200 and $1,250 levels.
- Ethereum started a fresh upward move above the $1,020 and $1,050 resistance.
- The price is now trading well above $1,100 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,110 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher if it settles above the $1,135 and $1,150 resistance levels.
Ethereum Price Eyes Fresh All-Time High
After a downside correction, Ethereum formed a support base near $980 and $1,000. As a result, ETH started a fresh increase and broke the $1,020 and $1,050 resistance levels.
The price gained pace and climbed nicely above the $1,100 level. There was a break above the 76.4% Fib retracement level of the downward move from the $1,135 high to $974 swing low. More importantly, there was a break above a major bearish trend line with resistance near $1,110 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The price is now trading well above $1,100 and the 100 hourly simple moving average. A successful close above the $1,120 and $1,135 resistance levels could accelerate gains in the near term.
The next stop for the bulls could be near the $1,175 zone. It is close to the 1.236 Fib extension level of the downward move from the $1,135 high to $974 swing low. Any more gains could open the doors for push towards the $1,220 and $1,250 levels in the near term.
Dips Supported in ETH?
If ethereum fails to clear the $1,130 and $1,150 resistance levels, it could start a short-term downside correction. An initial support on the downside is near the broken triangle trend line at $1,110.
A downside break below the trend line support might lead ether price towards the $1,080 support zone. Any more losses may possibly call for an extended decline below the $1,050 level. The next major support is near the triangle lower trend line at $1,040.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
Major Support Level – $1,050
Major Resistance Level – $1,135
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