Ethereum was down almost 20%, testing the $ 1,050 zone against the US dollar. ETH price is currently rebounding but could struggle near $ 1,200 and $ 1,250.
- Ethereum fell sharply after breaking the USD 1,250 and USD 1,200 support levels.
- The price is now correcting losses of $ 1,042 but is well below the 100-hour simple moving average.
- An important bearish trendline is forming on the hourly chart of ETH / USD (data feed via Kraken) with resistance near USD 1,300.
- The pair could continue to correct, but previous support near USD 1,250 should act as strong resistance.
Ethereum price recovers losses
For the past three to four sessions, there has been a nasty drop in Bitcoin and Ethereum below $ 32,000 and $ 1,200, respectively. ETH price fell almost 20% and broke many supports like $ 1,150 and $ 1,120.
It was trading near $ 1,040 and was well below the 100-hour simple moving average. A low is being formed near $ 1,042 and the price is currently correcting higher. There has been a break above the USD 1,100 resistance level and the price is showing some positive signs.
Ether is trading above the 23.6% fib retracement level of the recent decline from the swing high of $ 1,389 to the low of $ 1,042. On the upside, the first key resistance is near the USD 1,200 level.
Source: ETHUSD on TradingView.com
The next resistance could be near $ 1,215, or the 50% fib retracement level of the recent fall from the high of $ 1,389 to the low of $ 1,042. An important bearish trendline is also forming on the hourly chart of ETH / USD with resistance near USD 1,300.
If there is a significant break above $ 1,215, the price is likely to face strong selling interest near the $ 1,250 level in the upcoming sessions. Further gains could open the doors for a new rally towards $ 1,400.
Fresh bath at ETH?
If Ethereum does not rebound above the USD 1,200 and USD 1,210 levels, it risks falling again. Initial downside support is near the USD 1,120 level.
The first major support is near the USD 1,100 level. The main support is now forming near the USD 1,050 level. If Ether doesn’t stay above the USD 1,050 support, it could even drop below the USD 1,000 support.
Hourly MACD – – The MACD for ETH / USD is slowly gaining pace in the bullish zone.
Hourly RSI – – The RSI for ETH / USD is currently rising to the 40 level.
Main support tier – $ 1,120
Main Resistance Level – $ 1,250