TA: Ethereum Takes Hit, Why $1,400 Could Spark A Fresh Increase

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained bearish momentum below the $1,500 support against the US Dollar. ETH must stay above $1,400 to start a recovery wave.

Ethereum remained in a bearish zone and extended losses below $1,500.
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 $1,460 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a recovery wave unless there is a clear move below the $1,400 support.

Ethereum Price Breaks Down

Ethereum failed to recover losses and trade above the $1,550 level. ETH started another decline and traded below the key $1,500 support zone.

It opened the doors for a sharp decline below the $1,450 level. Ether price even tested the $1,400 support zone. A low is formed near $1,402 and the price is now consolidating losses. It is now trading below $1,500 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,440 level. The first major resistance is near the $1,450 zone. It is near the 23.6% Fib retracement level of the downward move from the $1,662 swing high to $1,402 low.

There is also a key bearish trend line forming with resistance near $1,460 on the hourly chart of ETH/USD. A clear move above the trend resistance might send the price towards the $1,500 level. The next major resistance could be $1,550.

Source: ETHUSD on TradingView.com

It is near the 50% Fib retracement level of the downward move from the $1,662 swing high to $1,402 low. The main breakout zone is now forming near the $1,550 zone. A clear move above the $1,550 level could start a decent increase.

More Losses in ETH?

If ethereum fails to rise above the $1,460 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 push the price towards the $1,375 support zone. Any more losses might even push ether price to the $1,300 support.

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 well below the 50 level.

Major Support Level – $1,400

Major Resistance Level – $1,460

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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