TA: Ethereum Struggles Near $1,100, Why Dips Could Be Limited Below $950

Aayush Jindal

Last Updated: June 11, 2024 2:12 pm

2 mins read

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Ethereum corrected lower sharply from a new all-time high at $1,166 against the US Dollar. ETH price remained well bid near $900 and it is currently showing signs of a fresh increase.

Ethereum rallied significantly and traded to a new all-time high at $1,160 before correcting lower.
The price is now consolidating above $900 and it is well above the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $980 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to resume higher as long as there is no close below $975 and $950.

Ethereum Price Remains Elevated

There was a strong surge in Ethereum above the $900 and $1,000 levels. ETH price broke the $1,100 level and settled well above the 100 hourly simple moving average. A new multi-month high was formed near $1,160 before the price corrected lower sharply.

There was a 20% decline in the price below $1,100. Ether price even spiked below the $1,000 and $900 levels. A low was formed near $889 before the price started a fresh increase.

The price climbed higher above the $1,000 and $1,100 levels. However, the bulls struggled to gain momentum above $1,120 and $1,130 levels. A high is formed near $1,135 and the price is again declining. It broke the $1,050 support level.

Source: ETHUSD on TradingView.com

There was a break below the 50% Fib retracement level of the recent wave from the $889 swing low to $1,135 high. On the downside, there is a strong support forming near the $980 and $950 levels. There is also a key bullish trend line forming with support near $980 on the hourly chart of ETH/USD.

The trend line is close to the 61.8% Fib retracement level of the recent wave from the $889 swing low to $1,135 high. On the upside, the price is facing hurdles near $1,050 and $1,080. The main resistance is now forming near $1,120, above which ether price might rally significantly.

More Downsides in ETH?

If ethereum fails to clear the $1,080 and $1,120 resistance levels, it could correct lower. An initial support on the downside is near the trend line at $980.

A downside break below the trend line support might lead ether price towards the $950 support zone. Any more losses may possibly call for a push towards the $900 level and the 100 hourly SMA in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is showing a few bearish signs.

Hourly RSI – The RSI for ETH/USD is currently close to the 50 level.

Major Support Level – $980

Major Resistance Level – $1,120

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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