A Strengthening Case for Upside

On Dec 2, 2022

Ethereum spiked above the $1,300 resistance zone against the US Dollar. ETH is correcting gains, but it remains supported near $1,250 and $1,230.

Ethereum gained pace for a move above $1,300 before the bears appeared.
The price is now trading above $1,250 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct further lower towards the $1,250 and $1,230 support levels.

Ethereum Price Eyes Another Increase

Ethereum price extended its increase above the $1,250 resistance zone. ETH even spiked above the $1,300 resistance zone and settled above the 100 hourly simple moving average, similar to bitcoin.

However, the bears were active abvoet the $1,300 resistance zone. Ether price traded as high as $1,309 before there was a downside correction. The price declined below the 23.6% Fib retracement level of the upward move from the $1,150 swing low to $1,309 high.

Besides, there was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD. The pair is still trading above $1,250 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,290 level. The first major resistance is near the $1,300 level. A close above the $1,300 resistance might send the price further higher. The next major resistance is near the $1,350 level, above which ether price might test $1,400.

If the bulls remain in action above $1,400, the price could rise towards the $1,450 resistance zone. Any more gains might send the price towards the $1,500 resistance zone.

Dips Supported in ETH?

If ethereum fails to start another increase above the $1,300 resistance, it could start a downside correction. An initial support on the downside is near the $1,250 level and the 100 hourly simple moving average.

The next major support is near the $1,230 level or the 50% Fib retracement level of the upward move from the $1,150 swing low to $1,309 high. If there is a break below $1,230, the price could test the $1,180 support. Any more losses could lead the price towards the $1,150 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now just below the 50 level.

Major Support Level – $1,230

Major Resistance Level – $1,300