Ethereum Gains Bearish Momentum, Why ETH Could Test $1,280
Ethereum extended its decline below $1,450 against the US Dollar. ETH price is gaining bearish momentum and it could even test the $1,280 support.
- ETH price remained in a bearish zone below the $1,650 and $1,700 resistance levels against the US Dollar.
- The price is trading well below $1,500 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance at $1,500 on the 4-hours chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue lower towards the $1,280 support as long as it is below $1,500.
Ethereum Turns Red
This past week, bitcoin and ethereum saw a steady decline below $50,000 and $1,700 respectively against the US Dollar. ETH even traded below the $1,500 support zone and settled well below the 100 simple moving average (4-hours).
It traded as low as $1,364 before correcting higher. There was a recovery above $1,600, but ether failed to settle above $1,700. It traded as high as $1,723 before starting a fresh decline. It is back below $1,500 and it is approaching the $1,350 support.
There is also a major bearish trend line forming with resistance at $1,500 on the 4-hours chart of ETH/USD. If there are more losses, the price could move down towards the $1,280 support. It is close to the 1.236 Fib extension level of the upward move from the $1,364 low to $1,723 high.
Source: ETHUSD on TradingView.com
The next major support below the $1,280 level is near the $1,140 level. The 1.618 Fib extension level of the upward move from the $1,364 low to $1,723 high is also near the $1,140 level. The next major support zone is seen near the $1,100 level.
Upsides Limited in Ether (ETH)?
If Ethereum starts a fresh increase, it could correct above the $1,450 resistance. The first major resistance is near the $1,500 level and the bearish trend line.
A close above the trend line is needed for a strong increase towards the $1,650 resistance. To start a strong increase, the price must settle above $1,700. Any more gains could open the doors for a move towards the $1,800 level.
4 hours MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
4 hours RSI – The RSI for ETH/USD is still below the 50 level.
Major Support Level – $1,280
Major Resistance Level – $1,500
Article reposted on Markethive by Jeffrey Sloe