Ethereum fell below the $1,500 support level against the US Dollar. ETH must stay above $1,300 to avoid a dip towards $1,120 or even $1,000.
- Ethereum is down more than 20% and is trading below the $1,500 support.
- The price is now trading under $1,500 and a 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,420 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may start a recovery wave if there is a clear movement above the resistance at $1,425.
Ethereum price drops dramatically
Ethereum failed to start a new increase above Resistance $1,800. There was a sharp bearish reaction below the $1,720 and $1,700 support levels.
The bears gained strength and pushed the price below the $1,500 support level. It fell more than 20% and broke the $1,420 support. The bottom formed near $1,304 and the price settled below 100-hour simple moving average.
It is now consolidating losses above the $1,300 level. Ether has already tested the 23.6% Fib retracement level of the recent decline from the $1,544 swing high to $1,304.
On the upside, there is an initial resistance near the $1,380 level. The first major resistance is near the $1,400 and $1,420 levels. There is also a major bearish trend line forming with resistance near $1,420 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent decline from the $1,544 high swing high to $1,304.
Source: ETHUSD on TradingView.com
The next major resistance is near the $1,500 level. A clear move above the $1500 resistance might start a strong rally. The next major resistance is near the $1,700 level.
More losses in ETH?
If Ethereum fails to rise above the resistance at $1,420, it may continue to decline. There is initial support on the downside near the $1.320 region.
The next major support is near the $1,300 level. A clear move and a break below the $1,300 support level could start another decline. In the mentioned case, the price could slide towards the near-term support area of $1,200 or even $1,150.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now near the 30 level.
Key Support Level – $1300
Key Resistance Level – $1,420