Ethereum Price Tumbles, Why Recovery Could Be Round The Corner
Ethereum extended losses below the $1,400 support against the US Dollar. ETH is consolidating and might recover if there is a clear move above $1,340 resistance.
- Ethereum started a major decline below the $1,400 and $1,350 levels.
- The price is now trading below $1,400 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,320 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is down over 10% and is currently consolidating losses near $1,300.
Ethereum Price Dives Over 10%
Ethereum started a major decline from well above the $1,550 level. ETH broke a major support near the $1,500 level and the 100 hourly simple moving average. The recent decline in FTT and SOL dragged the market lower, including bitcoin.
Ether price declined heavily below the $1,400 support level. The bears were even able to push the price below the $1,350 level. The price traded as low as $1,221 and recently corrected a few higher. There was a move above the $1,250 and $1,300 levels.
The price is now trading below $1,400 and the 100 hourly simple moving average. It is consolidating near the 23.6% Fib retracement level of the recent decline from the $1,580 swing high to $1,221 low.
An immediate resistance on the upside is near the $1,320 level. There is also a key bearish trend line forming with resistance near $1,320 on the hourly chart of ETH/USD. The next major resistance is near the $1,340 level. A clear break above the $1,340 resistance could set the pace for a decent increase.
Source: ETHUSD on TradingView.com
In the stated case, the price could rise to the $1,400 level. It is near the 50% Fib retracement level of the recent decline from the $1,580 swing high to $1,221 low. Any more gains might send the price toward the $1,500 resistance zone.
More Losses in ETH?
If ethereum fails to climb above the $1,340 resistance, it could continue to move down. An initial support on the downside is near the $1,275 level.
The next major support is near the $1,220 level, below which ether price may perhaps extend losses. In the stated scenario, the price could decline towards the $1,100 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,275
Major Resistance Level – $1,340