Ethereum declined nearly 30% and tested the USD 900 support zone against the US dollar. The ETH price is currently rising but it is facing a strong resistance near USD 1,130.
- Ethereum started a strong decline well above USD 1,200 and traded close to USD 900.
- The price is recovering nicely from USD 912, but it is facing hurdles near USD 1,130 and the 100 simple hourly moving average.
- There is a major bearish trendline with resistance at $ 1,130 on the ETH / USD hourly chart (data feed via Kraken).
- The pair will have to settle for over $ 1,130 and the 100-hour SMA to start a new rally.
Ethereum price recovers losses
There was also a break below the USD 1,000 support level and the price traded close to the USD 900 level. A swing low was formed at $ 912 before the price started a fresh rise. It appears the bulls have defended the latest swing region near the $ 900 -920 zone.
Ether price is up more than 10% and it is trading nicely above $ 1,000. There was a break above the 23.6% Fib retracement level from the downward correction from the $ 1,352 swing high to the $ 912 swing low.
Source: ETHUSD on TradingView.com
However, the price is facing hurdles near USD 1,130 and the 100 simple hourly moving average. There is also a major bearish trendline with resistance near $ 1,130 on the ETH / USD hourly chart. The trend line is close to the 50% Fib retracement level of the downward correction from the $ 1,352 swing high to $ 912 swing low.
To start a new rally, the ether price must clear the trendline resistance, $ 1,130, and the 100-hourly simple moving average. The next big resistance above USD 1,130 is near the USD 1,200 level.
Fresh dips in ETH?
If ethereum doesn’t lift the USD 1,130 resistance and the 100-hour simple moving average, it could start another decline. An initial support on the downside is near the USD 1,050 level.
The first major support is near the USD 1,000 level. A downside break below the USD 1,000 level could potentially start another decline towards the USD 900- USD 920 support zone in the coming sessions.
MACD per hour – The MACD for ETH / USD is gaining pace in the bullish zone.
RSI per hour – The RSI for ETH / USD is back above the 50 level with a bullish angle.
Major Support Level – $ 1,000
Major Resistance Level – $ 1,130