Ethereum Price Smashes Key Resistance But It’s Too Early To Call A Bottom

Ethereum’s ETH is slowly moving higher above $1,200. The price is still in a major downtrend unless there is a close above $1,350.

Ethereum Price (ETH) Recovers Slightly

In the past few days, ethereum and bitcoin remained in a bearish zone against the US Dollar. The ETH/USD pair declined below the $1,200 and $1,120 support levels.

However, the bulls were again active near the $1,075 zone. A low was formed near $1,075 and the price started an upside correction. There was a steady increase above the $1,120 resistance zone and the 50 simple moving average (4-hours, blue).

Etheruem price 4-hours price chart | Source: ETH/USD on TradingView.com

The price was able to clear the 23.6% Fib retracement level of the key drop from the $1,345 swing high to $1,075 low. Besides, ether price surpassed a key bearish trend line with resistance near $1,185 on the 4-hours chart.

An immediate resistance is near the $1,210 level. It is near the 50% Fib retracement level of the key drop from the $1,345 swing high to $1,075 low.

The first major resistance is near the $1,242 level. A clear move above the $1,242 and $1,250 resistance levels might send the price towards the $1,282 resistance. The next major resistance is near the $1,345 level. Any more gains might open the doors for a move towards the $1,500 resistance.

Fresh Bearish Move?

If there is no upside break above the $1,242 resistance, the price might start a fresh decline. An immediate support on the downside sits near the $1,180 level and the 50 simple moving average (4-hours, blue).

The next major support is near $1,135 level. A close below the $1,135 level might send the price towards the main $1,075 support. Any more losses below $1,075 could lead the price towards the $1,000 zone.

Overall, ether price is currently correcting higher from the key $1,075 support. If ETH closes above the $1,242 resistance and then clears $1,345, it could move into a positive zone. Conversely, the price might start another decline and revisit the $1,075 support zone. In the stated case, there is a risk of a drop below the $1,000 support.