Ethereum started a fresh decline below the $1,200 zone against the US Dollar. ETH might correct higher, but the bears could remain active near $1,230.
- Ethereum extended its decline and traded towards the $1,180 support zone.
- The price is now trading below $1,200 and the 100 hourly simple moving average.
- There is a connecting bearish trend line forming with resistance near $1,200 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct higher, but upsides might remain capped near the $1,210 and $1,230 levels.
Ethereum Price Faces Resistance
Ethereum price started a fresh decline from the key $1,230 resistance zone. ETH declined below the $1,210 support zone and the 100 hourly simple moving average.
The price even extended its decline below the $1,200 level. It tested the $1,180 level. A low is formed near $1,180 and the price is now correcting losses. There was a minor move above the $1,192 level. Ether price climbed above the 23.6% Fib retracement level of the downward move from the $1,232 swing high to $1,180 low.
Ether price is now trading below $1,200 and the 100 hourly simple moving average, similar to bitcoin. There is also a connecting bearish trend line forming with resistance near $1,200 on the hourly chart of ETH/USD.
An immediate resistance is near the $1,200 level. It is near the 50% Fib retracement level of the downward move from the $1,232 swing high to $1,180 low. The next major resistance is near the $1,220 level. The first major resistance is near $1,230.
Source: ETHUSD on TradingView.com
A close above the $1,230 resistance could start a steady increase. In the stated case, the price may perhaps rise towards the $1,250 resistance. The next major resistance could be $1,300, above which the price might rise towards the $1,350 resistance zone.
More Losses in ETH?
If ethereum fails to climb above the $1,210 resistance, it could start another drop. An initial support on the downside is near the $1,180 level.
The next major support is near the $1,165 level. A downside break below $1,165 might send the price towards the $1,100 support. Any more losses might call for a test of the $1,055 zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,180
Major Resistance Level – $1,210
Credit: Source link
