• Ethereum extended its increase above the $1,300 resistance zone against the US Dollar.
• There is a major bullish trend line forming with support near $1,292 on the hourly chart of ETH/USD.
• Ethereum is still trading above $1,300 and the 100 hourly simple moving average.
The cryptocurrency market has seen a lot of bullish momentum in recent weeks, with Bitcoin leading the charge and other coins like Ethereum following suit. Ethereum, the second-largest cryptocurrency by market cap, has extended its increase above the $1,300 resistance zone against the US Dollar. The price tested the $1,350 zone and is currently correcting lower.
The bullish momentum in Ethereum can be attributed to a number of factors. Firstly, the recent increase in institutional investments in the cryptocurrency market has led to increased demand for Ethereum. Secondly, the growth of the DeFi sector has been a major driver of the price of Ethereum. This is because most DeFi projects are built on top of Ethereum blockchain and their success has led to increased demand for ETH.
On the technical front, Ethereum remained in a positive zone and climbed above the $1,300 and $1,320 resistance levels. The price is now trading above $1,300 and the 100 hourly simple moving average. There is a major bullish trend line forming with support near $1,292 on the hourly chart of ETH/USD (data feed via Kraken). The pair could rise further if it stays above the $1,280 support zone.
Above the $1,350 resistance, Ethereum could test the $1,400 level. On the downside, the main support is near the $1,280 level. If there is a downside break below the $1,280 support, the price could decline towards the $1,250 support level. A successful close below the $1,250 support could trigger a bearish trend in Ethereum.
Overall, Ethereum has been in a bullish phase and it could continue to rise as long as it stays above the $1,280 support zone. If the price fails to stay above the $1,280 support, a downside break could lead to more losses in the near term.