Ethereum extended its decline and tested the $1,000 support against the US Dollar. ETH is recovering, but it needs to clear $1,280 to start a steady upward move.
- Ethereum fell to the $1,000 level before the bulls arrived.
- The price is now trading below $1,280 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USD (data feed via Kraken).
- Unless it clears $1,280 and $1,300 in the near term, the pair could resume its decline.
Ethereum price faces major resistance
Ethereum started a fresh decline below the $1,100 level. The price traded with a new multi-month low and tested the $1,000 support area.
A low was formed near $1,013 before the price started a 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 key decline from the $1,546 high to $1,013 low.
There was also a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USD. However, the price is still trading below $1,280 and the 100 hourly simple moving average.
The bears were active near the $1,260 resistance area. The next major resistance is near the $1,280 area and the 100 hourly simple moving average. The 50% Fib retracement level of the key decline from the $1,546 high to $1,013 low is also near the $1,280 area.
Source: ETHUSD on TradingView.com
A clear move above the $1,280 resistance area could probably start a decent upward move. The next major resistance is near the $1,420 level. Any further gains could start towards the $1,550 resistance area.
Latest drop in ETH?
If Ethereum fails to rise above the $1,280 resistance, it could start a fresh decline. An initial support on the downside is near the $1,180 area.
The next major support is near the $1,125 area. A clear move and a break below the $1,125 area could start a major decline. In this case, the price could decline towards the $1,000 support area in the near term.
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 above the 50 level.
Key Support Level – $1,125
Key Resistance Level – $1,280
