Ethereum Price Nosedives, Why ETH Could Soon Test $1,200

Ethereum dropped sharply below the $1,500 resistance against the US Dollar. ETH has fallen more than 10%, and could experience further losses as it approaches the $1.200 resistance.

  • After failing to break the $1,500 resistance level Ethereum began a new decline.
  • The 100-hourly simple moving average and price are now below $1,400.
  • A key bearish trend line is emerging with resistance close to $1,360 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • It is possible that the pair will accelerate lower than the $1,300 support area in the immediate future.

New Drop in Ethereum Prices

Ethereum was unable to increase its strength enough for an upward move over the $1480 and $1500 resistance levels. ETH reached a high near $1,475 and began a new decline.

A steady fall below the $1.400 level was observed, as well as the 100 hourly simple moving mean. It even fell below the $1350 and $1320 support levels. A drop of around 10% was observed and the price fell as low as $1.288.

The Ether price has been consolidating its losses at the $1,280 and 100-hourly simple moving average levels. The upside is that the price faces resistance at the $1,335 mark. The price is close to the 23.6% Fib Retracement level for the recent fall from $1,474 swing high, $1,288 low.

Near the $1,360 or $1,380 levels is where you will find major resistance. On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $1,360. The Fib level is at 50% of the retracement levels for the recent fall from the $1.474 swing high and $1.288 low.

Ethereum Price

Source: ETHUSD

If the price breaks $1,380, it could push the price to the $1,440 mark. If the price gains continue, it could be possible to move toward the $1480 resistance.

Are There More Losses in Ethereum?

The $1,360 resistance could be broken and ethereum may continue its downward slide. The $1,300 area is the initial support for the downside.

Nearly $1,260 is the next support. The downside breakout below the $1260 support could lead to another steep decline. The above scenario could lead to a decline in ether prices towards $1,200.

Technical indicators

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

Hourly RSIThe RSI is currently below the 50 level for Ethereum/USD.

Major Support Level – $1,300

Major Resistance Level – $1,360

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