TA: Ethereum Takes Major Hit, Can The Bulls Protect More Losses

Aayush Jindal

1 year ago

2 mins read

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Ethereum tumbled below the $1,500 support against the US Dollar. ETH must stay above $1,300 to avoid a drop towards $1,120 or even $1,000.

Ethereum declined over 20% and traded below the $1,500 support.
The price is now trading below $1,500 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $1,420 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might start a recovery wave if there is a clear move above the $1,425 resistance.

Ethereum Price Declines Heavily

Ethereum failed to start a fresh increase above the $1,800 resistance. There was a sharp bearish reaction below the $1,720 and $1,700 support levels.

The bears gained strength and pushed the price below the $1,500 support level. It declined over 20% and broke the $1,420 support. A low is formed near $1,304 and the price settled below the 100 hourly simple moving average.

It is now consolidating losses above the $1,300 level. Ether already tested the 23.6% Fib retracement level of the recent decline from the $1,544 swing high to $1,304 low.

On the upside, an initial resistance is near the $1,380 level. The first major resistance is near the $1,400 and $1,420 levels. There is also a key bearish trend line forming with resistance near $1,420 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent decline from the $1,544 swing high to $1,304 low. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Source: ETHUSD on TradingView.com

The next major resistance is near the $1,500 level. A clear move above the $1,500 resistance might start a strong increase. The next major resistance is near the $1,700 level.

More Losses in ETH?

If ethereum fails to rise above the $1,420 resistance, it could continue to move down. An initial support on the downside is near the $1,320 zone.

The next major support is near the $1,300 level. A clear move and break below the $1,300 support could start another decline. In the stated case, the price could slide towards the $1,200 support zone in the near term or even $1,150. Download Bitcoin Miner Awesom Miner Official for Windows. Safe install and earn ETH/BTC.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now just near the 30 level.

Major Support Level – $1,300

Major Resistance Level – $1,420

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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