Ethereum extended losses below the $1,200 support against the US Dollar.
- Ethereum started a major decline below the $1,320 and $1,250 levels.
- The price is now trading below $1,250 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $1,200 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is recovering, but upsides might be limited above the $1,200 resistance zone.
Ethereum Price Dives Over 15%
Ethereum remained in a bearish zone after it settled below the $1,500 level. ETH broke many important support zones near $1,300 to move further into a negative zone.
The price gained pace below the $1,300 and $1,250 support levels. It even settled below the $1,200 level and the 100 hourly simple moving average. Ether price traded as low as $1,070 and recently started an upside correction, similar to bitcoin.
There was a minor increase above the $1,120 resistance level. The price is now trading above $1,150 and facing many hurdles. An immediate resistance on the upside is near the $1,190 level. There is also a major bearish trend line forming with resistance near $1,200 on the hourly chart of ETH/USD.
The trend line resistance is near the 23.6% Fib retracement level of the recent drop from the $1,580 swing high to $1,070 low. The next major resistance is near the $1,240 level. A clear break above the $1,240 resistance could set the pace for a decent increase.
Source: ETHUSD on TradingView.com
In the stated case, the price could rise to the $1,320 level. It is near the 50% Fib retracement level of the recent drop from the $1,580 swing high to $1,070 low. Any more gains might send the price toward the $1,400 resistance zone.
More Losses in ETH?
If ethereum fails to climb above the $1,240 resistance, it could continue to move down. An initial support on the downside is near the $1,120 level.
The next major support is near the $1,070 level, below which ether price may perhaps extend losses. In the stated scenario, the price could decline towards the $1,000 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 – $1,120
Major Resistance Level – $1,240