Ethereum started a fresh drop from the $1,350 resistance level against the US Dollar. ETH has retested $1,255 and remains at risk of further losses.
- Ethereum started another decline after it failed to clear the $1,375 area.
- The price is now trading below $1320 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may decline sharply if it stays below the $1350 level for an extended period.
Ethereum price turns red
Ethereum fails to increase speed above $1350 resistance area. ETH started a fresh decline below the $1,320 support area and the 100 hourly simple moving average.
The bears even pushed the price below the $1,300 level. Ether price has retested the $1260 support area. A bottom formed near $1,264 and the price is now consolidating losses. They are now trading at less than $1,320 and 100 hourly simple moving average.
On the upside, the price is facing resistance near the $1,300 area. There is also a major bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD. The trend line is near the 23.6% Fib retracement level of the recent decline from the $1,373 swing high to $1,264 low.
The first major resistance is near the $1,320 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $1,373 swing high to $1,264 is also near $1,318.
source: ETHUSD on TradingView.com
A clear break above $1320 may lead to a decent rally towards the $1350 level. Any further gains could open the door to a move towards the $1,400 resistance area, above which the price could rise to $1,450.
A new drop in ETH?
If Ethereum fails to climb above the $1320 resistance, it may start a new decline. There is initial support on the downside near the $1,260 level.
The next major support is near the $1250 level. A bearish breakout below the $1250 level may send the price towards the $1220 support level. Any further losses could trigger the selling and the price could drop to $1,200 or even around $1,150.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Key Support Level – $1,260
Key Resistance Level – $1,320