Ethereum price consolidates gains, why ETH could start another surge

Ethereum surged higher and tested the $1,275 resistance zone against the US Dollar. ETH is consolidating gains and could make a fresh move above the Resistance Aim for $1,300.

• Ethereum struggled to scale higher above the $1,275 and $1,280 resistance levels.
• The price is now trading above $1,230 and the 100 hourly simple moving average.
• There is a connecting bullish trend line forming with support near $1,230 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if the price stays above the $1,220 support zone.

Ethereum price remains stable

Ethereum price started a decent climb above the $1,220 level. ETH gained pace and managed to clear the $1,240 resistance zone, similar to Bitcoin.

The price even surged above the $1,250 level and tested the $1,275 level. A high was formed at $1,271 and recently initiated a minor downward correction. There was a move below the 23.6% Fib retracement level of the bullish move from the $1,204 low to the $1,271 high.

Ether price is now trading above $1,230 and the 100 hourly simple moving average. There is also a connecting bullish trend line forming with support near $1,230 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

Immediate resistance is near $1,260. The next major resistance is near $1,270. A clear move above the $1,270 resistance could be a decent move up. In the mentioned case, the price might perhaps rise towards the $1,320 resistance. The next major resistance might be $1,350, above which the price could surge towards the $1,450 resistance zone.

Dips supported in ETH?

If Ethereum fails to clear the $1,260 resistance, it could continue to correct lower. Initial support on the downside is near $1,240.

The next major support is near $1,230 and the trendline. It is near the 61.8% Fib retracement level of the move higher from the $1,204 swing low to $1,271 high. A downside break below the trendline support could send the price towards the $1,200 support. Further losses may require a test of the $1,180 zone.

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 near the 50 level.

Greater support level – $1,230

Main resistance level – $1,275