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Ethereum declined close to 20% and it tested the $1,050 zone against the US Dollar. ETH price is currently recovering, but it might struggle near $1,200 and $1,250.
- Ethereum declined heavily after it broke the $1,250 and $1,200 support levels.
- The price is now correcting losses from $1,042, but it is well below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct further, but the previous support near $1,250 is likely to act as a strong resistance.
Ethereum Price is Recovering Losses
In the past 3-4 sessions, there was a nasty decline in bitcoin and Ethereum below $32,000 and $1,200 respectively. ETH price nosedived almost 20% and it broke many supports such as $1,150 and $1,120.
It traded close to $1,040 and settled well below the 100 hourly simple moving average. A low is formed near $1,042 and the price is currently correcting higher. There was a break above the $1,100 resistance level and the price is showing a few positive signs.
Ether is trading above the 23.6% Fib retracement level of the recent decline from the $1,389 swing high to $1,042 low. On the upside, the first key resistance is near the $1,200 level.
Source: ETHUSD on TradingView.com
The next resistance could be near $1,215 or the 50% Fib retracement level of the recent decline from the $1,389 swing high to $1,042 low. There is also a key bearish trend line forming with resistance near $1,300 on the hourly chart of ETH/USD.
If there is a clear break above $1,215, the price is likely to face a strong selling interest near the $1,250 level in the coming sessions. Any more gains could open the doors for a fresh rally towards $1,400.
Fresh Dip in ETH?
If ethereum fails to recover above the $1,200 and $1,210 levels, there is a risk of a fresh decline. An initial support on the downside is near the $1,120 level.
The first major support is near the $1,100 level. The main support is now forming near the $1,050 level. If ether fails to stay above the $1,050 support, it could even decline below the $1,000 support level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently rising towards the 40 level.
Major Support Level – $1,120
Major Resistance Level – $1,250
