Ethereum Price Nosedives, Why ETH Could Soon Test $1,200


Ethereum dropped sharply from the $1,500 resistance area against the US Dollar. ETH is down more than 10% in value and there may be more losses towards the $1,200 support level.

  • Ethereum started a new decline after it failed to break above the $1,500 resistance area.
  • The price is now trading below $1,400 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1360 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could accelerate lower below the $1,300 support area in the near term.

Ethereum price starts new decline

Ethereum failed to gain strength to move above the $1480 and $1500 resistance levels. ETH topped out near the $1,475 level and Started a new low.

There has been a steady decline below the $1,400 level and the 100 hourly simple moving average. The price even traded below the $1350 and $1320 support levels. There was a drop of over 10% and the price was trading as low as $1,288.

Ether price is now consolidating losses above $1280 and below 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,335 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,474 high to $1,288 low.

The next major resistance is near the $1,360 and $1,380 levels. There is also a major bearish trend line forming with resistance near $1,360 on the hourly chart of ETH/USD. It is close to the 50% Fibonacci retracement level of the recent decline from the $1,474 high to $1,288 level.

Ethereum price

Source: ETHUSD on TradingView.com

A clear break above $1380 could push the price towards the $1440 level. Any further gains could open the door for a move towards the $1480 resistance in the near term.

More losses in ETH?

If Ethereum fails to rise above the resistance at $1360, it may continue to decline. There is an initial support on the downside near the $1,300 region.

The next major support is near $1,260. A downside breakout below the support level at $1,260 could lead to another sharp decline. In the aforementioned case, the price of Ether may fall towards the $1200 level.

Technical Indicators

MACD per hourETH/USD’s MACD is gaining momentum in bearish territory.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Key Support Level – $1300

Key Resistance Level – $1,360



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