Ethereum remains in a bearish zone below $1,200 against the US Dollar. ETH is likely to continue lower until it crosses the $1,280 resistance area.
- Ethereum is forming a downside correction below the $1,200 and $1,280 levels.
- The price is now trading below $1,250 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,245 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may resume its decline in the near term below the levels of $1,120 and $1,100.
Ethereum price faces hurdles
Ethereum declined significantly below the $1,500 support area. The price traded as low as $1,073 and it recently started a minor upside correction.
There was a recovery wave above the $1,120 and $1,150 levels. Ether price climbed above the 23.6% Fib retracement level of the recent decline from the $1,545 high to $1,072 low. However, the price is still trading below $1,250 and the 100 hourly simple moving average.
The bears were active near the $1,260 resistance area. There is also a major bearish trend line forming with resistance near $1,245 on the hourly chart of ETH/USD.
On the upside, an initial resistance is near the $1,240 level. The first major resistance is near the $1,280 and $1,300 levels. The 50% Fib retracement level of the recent decline from the $1,545 high to $1,072 low is also near the $1,300 area.
Source: ETHUSD on TradingView.com
A clear move above the trend line resistance and then $1,300 could start a recovery wave. The next major resistance is near the $1,350 level and the 100 hourly simple moving average. Any further gains could start towards the $1,440 resistance area.
More losses in ETH?
If Ethereum fails to rise above the $1,280 resistance, it could continue to move lower. An initial support on the downside is near the $1,120 area.
The next major support is near the $1,070 area. A clear move below the $1,070 area and a breakout could put a lot of pressure on the bulls. In this case, the price could decline towards the $1,000 support area in the near term.
hourly macd , The MACD for ETH/USD is now gaining momentum in the bearish zone.
hourly rsi , The RSI for ETH/USD is now below the 50 level.
Key Support Level – $1,070
Key Resistance Level – $1,280