Ethereum fell below $1,200 against the US Dollar. To begin a wave of recovery, ETH must remain at least $1,000.
- Ethereum traded lower than $1,200 and declined more than 20%
- Today, the price traded below $1300. The 100-hourly simple moving average is also lower.
- A major bearish trendline is emerging with resistance close to $1,285 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- If the pair clears $1,200 in the short term resistance zone it could start a wave of recovery.
Ethereum price drops 20%
Ethereum was still in the bearish zone, below $1500 support. The price fell below $1,320 at the support level.
The close was below the $1200 level as well as the 100-hourly simple moving average. The Ether price jumped below $1,100 and reached a multi-month high of $1,073. Now, it is consolidating losses over the $1100 level.
The $1,185 level provides initial support. This is close to the 23.6% Fib Retracement Level of the recent fall from $1,545 swing high, $1,073 low.
Near the $1,280-$1,300 levels is the first significant resistance. A major bearish trendline is also emerging with resistance close to $1,285 in the hourly chart. This trend line lies close to the 50% Fib Retracement level for the decline from $1,545 swing highs to $1,073 lows.
Source: TradingView.com, ETHUSD
Clear movement above trend line resistance may signal the beginning of a recovery wave higher than $1,250. Next is $1,440 and the 100 hourly simple movement average. Gains of any kind could lead to a push towards $1,500.
Are There More Losses in Ethereum?
It could fall further if it fails to climb above $1,300. Initial support is located near the $1120 zone.
Next major support will be at the $1,075 mark. Another decline could be initiated by a clear move below $1,075. The price may slide to the $1,075 support area in the short term.
Technical Indicators
Minutely MACD – MACD of ETH/USD has lost momentum and is currently in the bearish zone.
Hourly RSI – The RSI is at or near 35 for ETH/USD.
Major Support Level – $1,100
Major Resistance Level – $1,300