Key Takeaways:
• A wave of recovery for Ethereum began over the $1,200 and $1,220 marks.
• The price is currently trading beneath the 100 hourly simple moving average as well as $1,300.
• On the hourly chart of ETH/USD, there was a break over a significant negative trend line with resistance close to $1,210.
• The $1,320 resistance level and the 100 hourly simple moving average are currently being challenged by the pair.
Key Resistance Beckons Ethereum Price
Similar to bitcoin, ethereum had a sharp plunge below the $1,320 support level. Even ETH closed below the 100 hourly simple moving average and traded below the $1,200 support level.
Even lower, trading as low as $1,070, it even soared below $1,100. Over the recent period, there was an upward correction over $1,120 and $1,150. The price of ether increased beyond the critical Fibonacci retracement level of the significant decrease from the swing high of $1,580 to the low of $1,070.
On the hourly chart of ETH/USD, there was also a break over a significant bearish trend line with resistance close to $1,210. Even so, the pair surged above the $1,300 barrier.
The $1,320 resistance level and the 100 hourly simple moving average were defended by the bears, though. In addition, the price fell short of the 50% Fib retracement level of the significant loss from the swing high of $1,580 to the low of $1,070. The upward barrier on the upside is close to the $1,280 mark.
Near the $1,320 mark and the 100 hourly simple moving average is the next significant barrier. A definite break above the $1,320 resistance might signal the beginning of a respectable rise. In the hypothetical situation, the cost might increase to $1,400. The price may move toward the $1,500 resistance area if there are any further gains.
More ETH Losses?
Ethereum may keep falling if it is unable to overcome the $1,320 level. The $1,200 mark provides some initial support on the downside.
The price of ether may perhaps continue to decline below the next significant support, which is close to the $1,190 mark. According to the outlined scenario, the price could drop in the near term into the $1,070 support area.
Technical Indicators
Hourly MACD: The bullish zone of the ETH/USD MACD is now losing momentum.
Hourly RSI - The ETH/USD RSI is currently below the 50 mark.
$1,190 for Major Support Level.
$1,320 is the Major Resistance Level.
