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.
Source: TradingView.com 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.
Minutely MACD – MACD for USD/ETH is losing momentum now in the bearish area.
Hourly RSI – The RSI is currently below the 50 level for Ethereum/USD.
Major Support Level – $1,220
Major Resistance Level – $1,320