Ethereum extended its decline and tested the $ 1,000 support against the US dollar. ETH is recovering, but it needs to clear $ 1,280 to start a steady upward move.

  • Ethereum dropped to the $ 1,000 level before the bulls appeared.
  • The price is now trading below $ 1,280 and the 100 hour simple moving average.
  • There was a break above a large bearish trend line with resistance near $ 1 205 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair may resume its decline unless it pays out $ 1,280 and $ 1,300 soon.

Ethereum price faces key resistance

Ethereum has started a new drop below the $ 1,100 level. The price trades to a new multi-month low and tested almost the $ 1,000 support zone.

A low was formed near $ 1,013 before the price started an upward correction. There was a recovery wave above the $ 1,120 and $ 1,150 levels. Ether price climbed above the 23.6% Fib retracement level of the key decline from the $ 1,546 swing height to $ 1,013 low.

On top of that, there was a break above a large bearish trend line with resistance near $ 1,205 on the hourly chart of ETH / USD. However, the price is still trading below $ 1,280 and the 100 hourly simple moving average.

The bears were active near the $ 1,260 resistance zone. The next major resistance is near the $ 1,280 zone and the 100 hour simple moving average. The 50% Fib retracement level of the key drop from the $ 1,546 swing high to $ 1,013 low is also close to the $ 1,280 zone.

Ethereum price

Source: ETHUSD on TradingView.com

A clear move above the $ 1,280 resistance zone might start a decent upward move. The next major resistance is near the $ 1,420 level. Any more gains could start a move to the $ 1,550 resistance.

New decline in ETH?

If ethereum does not rise above the $ 1,280 resistance, it could start a new decline. An initial support to the downside is near the $ 1,180 zone.

The next big support is near the $ 1,125 zone. A clear move and break below the $ 1,125 zone could start a big drop. In that case, the price may slide to the $ 1,000 support zone in the short term.

Technical indicators

Hourly MACDThe MACD for ETH / USD is now losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH / USD is now above the 50 level.

Great support level – $ 1,125

Large resistance level – $ 1,280

306 thoughts on “Ethereum recovers 6%, why 100 SMA is the key to benefits”
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