TA: Ethereum Reverses Losses: Why ETH Could Face Resistance Near $1,130

Aayush Jindal

1 year ago

2 mins read

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Ethereum declined almost 30% and tested the $900 support zone against the US Dollar. ETH price is currently rising, but it is facing a strong resistance near $1,130.

Ethereum started a strong decline from well above $1,200 and traded close to $900.
The price is recovering nicely from $912, but it facing hurdles near $1,130 and the 100 hourly simple moving average.
There is a major bearish trend line in place with resistance near $1,130 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must settle above $1,130 and the 100 hourly SMA to start a fresh rally.

Ethereum Price Recovers Losses

Yesterday, we saw a massive decline in bitcoin, ethereum, ripple and other altcoins. ETH price declined almost 30% and it broke many important supports near $1,120 and $1,050.

There was also a break below the $1,000 support level and the price traded close to the $900 level. A swing low was formed near $912 before the price started a fresh increase. It seems like the bulls defended the last swing region near the $900$-920 zone.

Ether price is up over 10% and it is trading nicely above $1,000. There was a break above the 23.6% Fib retracement level of the downside correction from the $1,352 swing high to $912 swing low.

Source: ETHUSD on TradingView.com

However, the price is facing hurdles near $1,130 and the 100 hourly simple moving average. There is also a major bearish trend line in place with resistance near $1,130 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the downside correction from the $1,352 swing high to $912 swing low.

To start a fresh rally, ether price must clear the trend line resistance, $1,130, and the 100 hourly simple moving average. The next major resistance above $1,130 is near the $1,200 level.

Fresh Dips in ETH?

If ethereum fails to clear the $1,130 resistance and the 100 hourly simple moving average, it could start a fresh decline. An initial support on the downside is near the $1,050 level.

The first key support is near the $1,000 level. A downside break below the $1,000 level may possibly start a fresh decline towards the $900-$920 support zone in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is back above the 50 level, with a bullish angle.

Major Support Level – $1,000

Major Resistance Level – $1,130

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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