Key Takeaways:
- Ether price is forming a base above the $1,220 pivot level.
- ETH/USD is trading in a major contracting triangle with resistance near $1,500 on the daily chart.
- It could start a fresh rally if there is a clear move above the $1,500 resistance zone.
Ethereum’s ETH is stable above the $1,200 zone. The bulls might aim a fresh rally if there is a clear move above $1,400 and $1,500.
Ethereum (ETH) Price Holds Key Support
This past week, ethereum declined and traded below the $1,300 level against the US Dollar. However, the ETH/USD pair remained stable above the key $1,200 support zone.
A low was formed near $1,220 and the price settled well below the 50-day simple moving average (blue). The price is now consolidating losses above the $1,220 zone, with a minor bullish angle.
Etheruem’s daily price chart | Source: ETHUSD on TradingView.com
The price is now slowly moving higher above the $1,300 level. An immediate resistance is near the $1,355 level. It is near the 23.6% Fib retracement level of the main decline from the $1,790 swing high to $1,220 low.
The first major resistance is near the $1,400 level. A clear move above the $1,400 level may perhaps send the price towards the $1,500 level.
There is also a major contracting triangle forming with resistance near $1,500 on the daily chart. The triangle resistance is near the 50% Fib retracement level of the main decline from the $1,790 swing high to $1,220 low.
A clear move above the $1,500 resistance could send the price towards the $1,650 resistance. The next major resistance is near the $1,790 level. Any more gains might open the doors for a move towards the $2,000 resistance.
If there is no upside break, ether price might trade below $1,250. The next major support is near the $1,220 zone. A close below the $1,220 level might push the price further into a bearish zone.
In the stated case, the price may perhaps decline towards the $1,000 level. Any more losses below $1,000 could push ether price towards the $888 support zone.
Overall, ether price is still trading above a crucial support at $1,200. If the bulls fail to protect the $1,220 and $1,200 support levels, there is a risk of a major decline. Conversely, there might be a fresh increase above $1,355 and $1,400 in the coming days.
