Key Takeaways:
- Ether price is consolidating losses below the $1,400 and $1,500 resistance levels.
- ETH/USD is trading in a major contracting triangle with current support at $1,250 on the daily chart.
- It could either nosedive below $1,250 or might start a fresh wave towards $1,500.
Ethereum’s ETH remained in a bearish zone below $1,400. It must stay above $1,250 to start another increase in the near term.
Ethereum (ETH) Price Tests Major Support
This month, ethereum made a couple of attempts to clear the $1,400 resistance against the US Dollar. However, the ETH/USD pair remained in a bearish zone below $1,400 and the 50-day simple moving average (blue).
It seems like ether price is consolidating losses from the $1,789 swing high. It is stuck between the $1,250 and $1,400 levels.
Etheruem’s daily price chart | Source: ETHUSD on TradingView.com
There is also a major contracting triangle forming with current support at $1,250 on the daily chart. The last low was formed near $1,220 before the price started trading in a range. On the upside, an immediate resistance is near the $1,350 level.
The 23.6% Fib retracement level of the key decline from the $1,789 swing high to $1,220 low is also near the $1,350 level. The first major barrier is near the $1,400 level.
The main breakout resistance is near the $1,500 level and the 50-day simple moving average (blue). It is close to the triangle resistance, and the 50% Fib retracement level of the key decline from the $1,789 swing high to $1,220 low.
A clear move above the $1,500 resistance could start a fresh uptrend. The next major resistance is near the $1,570 level. Any more gains might open the doors for a move towards the $1,780 resistance.
If there is no upside break above the $1,400 and $1,500 resistance levels, there could be a major decline. Ether price may perhaps decline below the triangle support zone and then $1,220. The next major support is near the $1,120 zone.
A close below the $1,120 level might push the price further into a bearish zone. In the stated case, the price may perhaps decline towards the $1,000 level.
Overall, ether price is still trading near a crucial support at $1,250. If the bulls fail to protect the $1,250 and $1,220 support levels, there is a risk of a major drop. Conversely, there might be a fresh increase above $1,400 and $1,500 in the coming days.
