Ethereum started a fresh decline below the $1,180 support against the US Dollar. ETH is down more than 8% and there is a risk of a move towards the $1000 support.
- Ethereum started a major decline below the $1,180 and $1,170 support levels.
- The price is now trading below $1,150 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $1,210 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct losses, but there is a risk of more dips towards $1,000.
Ethereum price takes a hit
Ethereum price attempted an upside break above the $1,250 resistance, similar to bitcoins. ETH struggled to gain momentum and reacted lower below $1,200.
There was a break below the $1180 and $1170 support levels. Additionally, there was a break below a key uptrend line with support near $1,210 on the hourly chart of ETH/USD. The price gained bearish momentum and fell below the $1150 level.
Finally, there was a spike below the $1,120 level and the price traded at the low was $1,108. Ether price is now trading below $1,150 and the 100 hour simple moving average.
An immediate resistance on the upside is near the $1,140 level. It is near the 23.6% Fib retracement level of the downward move from the $1,231 high to $1,108 low. The next major resistance is near the $1,170 level. The main resistance is now near $1,180.
Source: ETHUSD on TradingView.com
The 61.8% Fib retracement level of the downward move from the $1,231 high to $1,108 low is also near $1,180. A clear break above the $1,180 resistance could send the price towards the $1,250 resistance zone. If the bulls stay in action and the price stabilizes above $1,250, the price could begin a steady rise towards the $1,300 level.
More losses in ETH?
If Ethereum fails to break above the $1,180 resistance, it could continue to decline. An initial support on the downside is near the $1,110 level.
The next major support is near the $1,080 level, below which Ether price could possibly gain some bearish momentum. In the given scenario, the price might drop towards the $1,000 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now in the oversold zone.
Major Support Level – $1,100
Major resistance level – $1,180