Ethereum Saw Crucial Rejection, Can Bulls Save This Support?

Ethereum suffered a significant rejection against the US Dollar near $1,420. ETH fell more than 6% against the US Dollar and is at risk of falling below $1,220.

  • Ethereum experienced a sharp decline starting at the $1420 resistance zone.
  • The current price trades below $1,300 as well as the simple 100-hour moving average.
  • The hourly chart for ETH/USD showed a breaking below the key bullish trendline with support at $1,325 (data feed via Kraken).
  • It is possible for the pair to recover but could face selling near $1,285 or $1,325 levels.

Ethereum price dives 6%

Ethereum tried to build bullish momentum over the $1,400 mark. ETH was unable to break the $1420 threshold and reacted quickly to the downtrend.

The $1,350 and $1.320 levels were both significantly lower than before. A break was also seen below the key bullish trendline with support at $1,325 in the hourly chart for ETH/USD. It even crossed the $1300 threshold and closed well below the 100-hourly simple moving average.

It traded at a weekly low of $1,219 but is consolidating the losses. It has reached the 23.6% Fib level to retrace the decline from the $1.419 swing high at the low to the $1.219 high.

Surprisingly, resistance is near $1,285. Next is resistance at the $1,320 level. This is near the 50 percent Fib level, which marks the retracement of the decline from $1,419 high to $1,219 lowest. Main resistance is near the $1,350 and the 100 hourly SMA.

Ethereum Price

Source: ETHUSD

If the price breaks above $1,350, it could signal a solid move towards $1,420. Gains above $1,350 could open up the possibility of a push towards the $1.500 resistance.

Are There More Losses in Ethereum?

It could move lower if it fails to overcome the $1,320 resistance. The $1,240 area is the initial support for the downside.

Close to $1,220 will be the next significant support. The support at $1,220 could cause a further sharp fall. If this happens, the ether price could drop to the $1,150 mark in the short term.

Technical Indicators

Minutely MACDMACD for USD/ETH is losing momentum now in the bearish area.

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

Major Support Level – $1,220

Major Resistance Level – $1,320

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