Home CryptocurrencyAnalysis Ethereum Saw Major Refusal, Can Bulls Rescue This Support?

Ethereum Saw Major Refusal, Can Bulls Rescue This Support?

by SuperiorInvest

Ethereum saw a major rejection near the $1,420 zone against the US dollar. ETH is down more than 6% and remains at risk of falling below the $1,220 support.

  • Ethereum started a new decline from the $1,420 resistance zone.
  • The price is now trading below $1,300 and the 100 hourly simple moving average.
  • On the hourly chart of ETH/USD (data feed via Kraken), there was a break below a key bullish trendline with support near $1,325.
  • The pair could recover but could face sellers near the $1,285 and $1,325 levels.

Ethereum price down 6%

Ethereum tried to gain bullish momentum above the $1,400 level. However, ETH struggled clear the $1,420 level and reacted sharply to the decline.

There was a significant decline below the $1,350 and $1,320 levels. Additionally, there was a break below a key bullish trendline with support near $1,325 on the hourly chart of ETH/USD. The pair even broke the $1,300 level and settled well below the level 100 hour simple moving average.

Ether price traded at a new weekly low of $1,219 and is currently consolidating losses. It is testing the 23.6% Fib retracement level of the recent decline from the $1,419 swing high to the $1,219 low.

On the upside, the price faces resistance near the $1,285 level. Another major resistance is near the $1,320 level. It is near the 50% Fib retracement level of the recent decline from the $1,419 swing high to the $1,219 low. The main resistance is located near the $1,350 level and the 100 hourly SMA.

Source: ETHUSD on TradingView.com

A clear break above $1,350 could initiate a decent rally towards the $1,420 level. Any further gains could possibly open the door for a move towards the $1,500 resistance.

More losses in ETH?

If Ethereum fails to recover above the $1,320 resistance, it may continue to move lower. Initial downside support is near the $1,240 zone.

The next major support is near $1,220. A downside break below the $1,220 support could trigger another sharp decline. In the mentioned case, the price of Ether could drop to the level of 1,150 USD in the near future.

Technical indicators

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

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,220

Major resistance level – $1,320

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