Ethereum fell below the $1,200 support level against the US dollar. ETH must stay above $1,000 to start a rally in the near term.
- Ethereum is down more than 20% and is trading below the $1,200 support level.
- The price is now trading below $1,300 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,285 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may start a recovery wave if it clears the $1200 resistance area in the near term.
Ethereum price plunges 20%
Ethereum remains in descending zone Below the $1,500 support area. The bears managed to push the price below the $1,320 support level.
There was also a close below the $1200 level and 100-hour simple moving average. Ether price surged below the $1,100 level and traded to a new multi-month low of $1,073. It is now consolidating losses above the $1,100 level.
On the upside, there is an initial resistance near the $1,185 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,545 swing high to $1073 low.
The first major resistance is near the $1,280 and $1,300 levels. There is also a major bearish trend line forming with resistance near $1,285 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent decline from the $1,545 swing high to $1,073 low.
Source: ETHUSD on TradingView.com
A clear move above trend line resistance could start a recovery wave above $1250. The next major resistance is near the $1440 level and the 100 hourly simple moving average. Any further gains could start to move towards the $1500 resistance level.
More losses in ETH?
If Ethereum fails to rise above the $1,300 resistance, it may continue to decline. There is initial support on the downside near the $1120 region.
The next major support is near the $1,075 level. A clear move and a break below the $1,075 support could start another decline. In the mentioned case, the price could slide towards the near-term support area of $1,000 or even $950.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now near the 35 level.
Main Support Level – $1100
Key Resistance Level – $1300