TA: Ethereum Recovery Faces Major Hurdle, Risk of Fresh Decline Exits

Aayush Jindal

1 year ago

2 mins read

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Ethereum declined towards $1,350 before recovering higher against the US Dollar. ETH is now facing a major resistance near the $1,460 and $1,500 levels.

Ethereum extended losses and traded below the $1,400 level.
The price is now trading below $1,460 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $1,440 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could struggle to recover above the $1,440 and $1,460 resistance levels.

Ethereum Price Remains In Bearish Zone

Ethereum remained in a bearish zone below the $1,500 level. ETH started another decline and traded below the key $1,400 support zone.

The price even spiked below the $1,360 level and traded as low as $1,257. It is now attempting a recovery wave above the $1,400 resistance zone. There was a move above the 23.6% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low.

However, ether price is trading below $1,460 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $1,440 level.

There is also a major bearish trend line forming with resistance near $1,440 on the hourly chart of ETH/USD. The first major resistance is near the $1,480 zone and the 100 hourly simple moving average. The main resistance is now forming near the $1,500 zone.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the downward move from the $1,662 swing high to $1,357 low is also near the $1,500 zone. A clear move above the $1,500 level could start a decent increase. In the stated case, the price may perhaps rise towards the $1,550 resistance zone.

More Losses in ETH?

If ethereum fails to rise above the $1,480 resistance, it could continue to move down. An initial support on the downside is near the $1,400 zone.

A clear move below the $1,400 support might spark another decline. In this case, ether price may perhaps revisit the $1,350 support. Any more losses might even push the price to the $1,300 support or even $1,250 in the near term.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now just above the 50 level.

Major Support Level – $1,400

Major Resistance Level – $1,480

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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