Ethereum plunged to $880, against the US Dollar. ETH is currently recovering and looking for an upside breakout above the $1150 resistance zone.
- Ethereum experienced a good recovery from the $880 support level.
- Now, the price trades above $1,000. The 100-hourly simple moving Average is also in play.
- The hourly chart for ETH/USD showed a breakout above the major bearish trendline with resistance at $980 (data feed via Kraken).
- If the pair clears $1,150 resistance it could begin a significant increase.
Ethereum Price Faces Hurdles
Ethereum traded in a bearish area below $1,050. ETH lost more and traded below $1,000. The $950 level was the lowest point.
Before the bulls arrived, the price reached the $880 level. Near $880 was the low and prices began to rise. A move was seen above the resistance levels at $950, $960. Ether crossed the 50% Fib level of the downmove from the $1256 swing high to the $880 low.
On the hourly chart, ETH/USD showed a breakout above a significant bearish trend line that had resistance close to $980. Even higher than the $1,100 mark was reached by the pair.
The bears appeared to be close to the $1,150 resistance. Ether did not clear the 76.4% Fib level of the downward movement from the $1256 swing high to the $880 low. The price has now stabilized near $1,080 and the 100-hourly simple moving average.
Source: TradingView.com ETHUSD
Near the $1,100 area is an immediate resistance. Next is the $1150 area. Clear moves above the $1150 resistance zone could possibly start an upward movement. Near the $1,255 mark is the next significant resistance. Gains above $1,255 could trigger a movement towards the $1320 resistance.
New Decline in the ETH
The $1,150 resistance could be broken and ethereum may begin to fall again. The $1,040 area is a support zone that provides initial support for the downside.
Next is the 1,000 zone. If the price breaks below $1,000, it could signal major weakness. If the above scenario is true, then the price may revisit the $880 support level in the immediate term.
Technical indicators
Hourly MACD – Now, the MACD of ETH/USD has gained momentum in the bearish area.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $1,000
Major Resistance Level – $1,150
