Ethereum fell towards $1,000 before finding support against the US Dollar. ETH is now correcting higher and facing a major hurdle near $1,125.
- Ethereum extended its decline towards $1,000 before finding support.
- The price is now trading above $1,080 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $1,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising if it clears the $1125 resistance area.
Ethereum price finds support
Ethereum remains in descending zone Below the $1,100 support area. ETH extended its decline below the $1,050 and $1,040 levels. However, the bulls emerged above the $1,000 support area.
A bottom was formed near $1,014 and the price started a new increase. The bulls gained strength to move above the $1050 and $1060 resistance levels. Ether price rose above the 23.6% Fib retracement level of the downside move from the $1,275 swing high to $1,014 low.
Besides, there was a break above the major downtrend line with resistance near $1,100 on the hourly chart of ETH/USD. Ether price is now trading above $1,080 and Simple moving average per 100 hours.
There is immediate resistance on the upside near the $1,125 level. The first major resistance is near the $1,145 region. It is close to the 50% Fib retracement level of the downside move from the $1,275 swing high to $1,014 low. A clear move above the $1,145 level could lead the price higher.
Source: ETHUSD on TradingView.com
The next major barrier is near the $1,195 level, above which the price starts a decent increase. In the mentioned case, the price may rise towards the $1280 resistance area.
A new drop in ETH?
If Ethereum fails to rise above the $1,145 resistance, it may start a new decline. There is initial support on the downside near the $1090 region. The next major support is near the $1,080 area.
A break-down below the support level at $1,080 could trigger another decline. In the mentioned case, the price may decline towards the $1030 level, below which the bears may gain strength.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $1,080
Key Resistance Level – $1,145