Key Takeaways:
- Ether price started a recovery wave from the $1,075 support zone.
- ETH/USD broke a key bearish trend line with resistance at $1,215 on the daily chart.
- The price could face a strong selling interest near $1,340 and $1,375.
New Delhi (Coinchapter): Ethereum’s ETH is recovering above $1,200. It must clear the $1,375 resistance area to move into a positive zone.
Ethereum (ETH) Price Faces Resistance
This past week, ethereum retested the $1,075 support zone against the US Dollar. The ETH/USD pair formed a base and remained well-bid near the $1,075 level.
The price steadily increased above the $1,150 and $1,200 resistance levels. Finally, the bulls were able to push the price above the $1,220 resistance, but it is still below the 50-day simple moving average (blue). Besides, the daily chart had a break above a key bearish trend line with resistance at $1,215.
The price settled above the 23.6% Fib retracement level of the main drop from the $1,678 swing high to the $1,073 low. On the upside, immediate resistance is near the $1,280 level.
The first major resistance is near the $1,340 level and the 50-day simple moving average (blue). The next major resistance is near the $1,375 level. It is close to the 50% Fib retracement level of the main drop from the $1,678 swing high to the $1,073 low.
A clear move above the $1,375 resistance might start a strong increase. The next major resistance is near the $1,445 zone, above which ether could surge toward the $1,680 resistance zone or the $1,820 pivot level.
Bull Trap?
There could be a downside correction if there is no upside break above the $1,340 and $1,375 resistance levels. The first major support is near the $1,210 level and the broken trend line. The next major support is near the $1,180 zone.
A close below the $1,180 level might push the price into a bearish zone. In the stated case, the price may decline towards the $1,075 support zone or even $1,000.
Overall, the ether price shows positive signs above the $1,220 level. The price might rise, but it faces an uphill task near $1,340 and $1,374. If the bulls fail to push the price above $1,375, there could be a fresh decline toward the $1,075 support zone in the coming days.
