Ethereum extended its decline and tested the $1,000 support against the US Dollar. ETH is recovering, but it must clear $1,280 to start a steady upward move.
- Ethereum dropped towards the $1,000 level before the bulls appeared.
- The price is now trading below $1,280 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its decline unless it clears $1,280 and $1,300 in the near term.
Ethereum Price Faces Key Resistance
Ethereum started a fresh decline below the $1,100 level. The price traded to a new multi-month low and almost tested the $1,000 support zone.
A low was formed near $1,013 before the price started an upside correction. There was a recovery wave above the $1,120 and $1,150 levels. Ether price climbed above the 23.6% Fib retracement level of the key drop from the $1,546 swing high to $1,013 low.
Besides, there was a break above a major bearish trend line with resistance near $1,205 on the hourly chart of ETH/USD. However, the price is still trading below $1,280 and the 100 hourly simple moving average.
The bears were active near the $1,260 resistance zone. The next major resistance is near the $1,280 zone and the 100 hourly simple moving average. The 50% Fib retracement level of the key drop from the $1,546 swing high to $1,013 low is also near the $1,280 zone.
Source: ETHUSD on TradingView.com
A clear move above the $1,280 resistance zone may perhaps start a decent upward move. The next major resistance is near the $1,420 level. Any more gains could start a move towards the $1,550 resistance.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,280 resistance, it could start a fresh decline. An initial support on the downside is near the $1,180 zone.
The next major support is near the $1,125 zone. A clear move and break below the $1,125 zone could start a major decline. In the stated case, the price could slide towards the $1,000 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,125
Major Resistance Level – $1,280
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Author: Aayush Jindal