Jul 08, 2022 01:41AM ET
By: AnalysisWatch
Ethereum gained momentum and broke through the $1,200 zone against the US dollar. ETH is up 8% and could continue to climb towards $1,300 or $1,320.
Ethereum remained well supported above the $1,120 level. The price started a new rise and managed to overcome an important hurdle near $1,150.
This opened the doors for a strong rise above the $1,200 level. Ether prices even broke through the $1,250 level and reached a new monthly high of $1,276. It is now trading above $1,200 and the 100-hour simple moving average.
The price is testing the 23.6% Fib retracement level of the recent rise from the low at $1,162 to the high at $1,276. There is also an important bullish trend line forming on the hourly chart of ETH/USD with support at $1,210. The immediate resistance on the upside is at $1,275.
The next important resistance is located in the area of $1,320, above which the price could potentially gain strength. In the aforementioned case, the price could rise to the resistance at $1,350. If the bulls stay in action, the price could rise to the $1,420 area. Are the dips in ETH limited?
A downward correction could begin if Ethereum fails to rise above the $1,275 resistance. The initial support on the downside is near the $1,230 zone. The next important support is near the $1,210 area. It is near the 50% Fib retracement level of the recent rise from the low at $1,162 to the high at $1,276.
If the price falls below the support at $1,210, it could move towards the 100-hour simple moving average or $1,160. If the price does not stay above the 100-hour SMA, it could even slide towards the $1,120 level.