Ethereum Close Below $1K Could Spark Larger Degree Downtrend

Ethereum’s value against the US dollar is below $1,080. The close to the $1,000 support area could cause a significant drop in ETH.

  • Ethereum held steady below $1.100 and $1.080 levels.
  • The current price trades below $1,100 as well as the simple 100-hour moving average.
  • A key bullish trendline is emerging with support at $1,050 (data feed via Kraken).
  • If the pair moves above $1,120, it could fall again.

Ethereum’s Price is at Risk

Ethereum was in a bearish area and tested the $1,000 support zone. ETH established a base close to $1,000, and has recently corrected higher.

A minor recovery wave occurred above $1,030/ $1,050 levels. The Ether price rose above 23.6% Fib Retracement of the pivotal decline from $1,236 swing high and $997 low. The upside breakout above $1,100 was attempted but it failed.

The 100-hourly simple moving average and $1,100 are now below it. The hourly chart shows a strong bullish trendline with support close to $1,050.

The $1,060 mark is the immediate resistance. Next is the $1,080 area. Near the $1100 zone is the first significant hurdle. This area represents the 50% Fib Retracement level for the important decline of $1,236 from its high to low. An increase of at least 10% could be possible if the resistance zone is reached close to $1,120.

Ethereum Price

Source: TradingView.com, ETHUSD

If the previous scenario is true, then the price might rise above the $1180 resistance. The price could rise towards the $1.236 mark if there are more gains.

What Are the Losses of ETH More?

The $1,080 resistance could prevent ethereum from rising above it. If that happens, the price may continue to fall. The trend line or near the $1,050 area provides initial support for the downside.

Near the $1,000 level is the next support. If the price drops below $1,000, it could lead to a steep decline. The above scenario could lead to a slide toward the $925 mark. A further loss could push the price toward the $880 support area.

Technical indicators

Minutely MACDIn the bearish zone, momentum is being gained by MACD for USD/ETH.

Hourly RSIThe current RSI level for USD/ETH is below 50.

Major Support Level – $1,000

Major Resistance Level – $1,080

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