TA: Ethereum Steadies Above $1,150: Why ETH Could Outperform BTC

Ethereum is holding a major support near $1,150 against the US Dollar. ETH price is consolidating and it is likely setting up for a major upside break above $1,250

  • Ethereum is facing a couple of major hurdles near $1,245 and $1,250.
  • The price is likely to remain well bid above $1,150 and near the 100 hourly simple moving average.
  • There is a key contracting triangle forming with support near $1,195 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to outperform bitcoin unless there is a clear break below the $1,150 support zone.

Ethereum Price Holding Key Support

In the past 2-3 sessions, Ethereum made two attempts to gain strength above $1,250 and $1,280. ETH price failed to settle above $1,250, formed a high near $1,270, and recently started a fresh decline.

There was a break below the $1,225 and $1,220 support levels. Ether price even spiked below the $1,200 level and tested the 100 hourly simple moving average. A low is formed near $1,184 and it is currently consolidating near the $1,195 level.

It seems like there is a key contracting triangle forming with support near $1,195 on the hourly chart of ETH/USD. An initial resistance on the upside is near the $1,225 level. It is close to the 50% Fib retracement level of the recent decline from the $1,270 high to $1,184 low.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major resistance is near the $1,250 level. It coincides with the 76.4% Fib retracement level of the recent decline from the $1,270 high to $1,184 low. If ether price breaks the $1,250 resistance and the triangle upper trend line, there are chances of a strong increase.

The next major resistance is near the $1,280 level. A close above $1,280 will most likely open the doors for a strong rally above $1,300 and $1,350.

Dips Supported in ETH?

If ethereum corrects lower below the triangle trend line and $1,192, it could find a strong support near the $1,150 level (a multi-touch zone).

A downside break and close below the $1,150 support level may possibly spark a strong decline towards $1,100. Having said that, ether is looking stable above $1,150, while bitcoin is showing bearish signs below $35,500 and $36,000.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is still below the 50 level.

Major Support Level – $1,150

Major Resistance Level – $1,250

Publication date: 
01/18/2021 - 07:18
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.