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

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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.

Ethereum Price

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.

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 30 level.

Major Support Level – $1,300

Major Resistance Level – $1,420

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