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TA: Ethereum Bears Chase $1K, Why Recovery Could Be Limited

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Ethereum tumbled below the $1,200 support against the US Dollar. ETH must stay above $1,000 to start a recovery wave in the near term.

  • Ethereum declined over 20% and traded below the $1,200 support.
  • The price is now trading below $1,300 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $1,285 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair might start a recovery wave if it clears the $1,200 resistance zone in the near term.

Ethereum Price Dives 20%

Ethereum remained in a bearish zone below the $1,500 support zone. The bears were able to push the price below the $1,320 support level.

There was also a close below the $1,200 level and the 100 hourly simple moving average. Ether price spiked below the $1,100 level and traded to a new multi-month low at $1,073. It is now consolidating losses above the $1,100 level.

On the upside, an initial resistance is near the $1,185 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,545 swing high to $1,073 low.

The first major resistance is near the $1,280 and $1,300 levels. There is also a major bearish trend line forming with resistance near $1,285 on the hourly chart of ETH/USD. The trend line is near the 50% Fib retracement level of the recent decline from the $1,545 swing high to $1,073 low.

Ethereum Price

Source: ETHUSD on TradingView.com

A clear move above the trend line resistance could start a recovery wave above $1,250. The next major resistance is near the $1,440 level and the 100 hourly simple moving average. Any more gains could start a move towards the $1,500 resistance.

More Losses in ETH?

If ethereum fails to rise above the $1,300 resistance, it could continue to move down. An initial support on the downside is near the $1,120 zone.

The next major support is near the $1,075 level. A clear move and break below the $1,075 support could start another decline. In the stated case, the price could slide towards the $1,000 support zone in the near term or even $950.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now just near the 35 level.

Major Support Level – $1,100

Major Resistance Level – $1,300

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